UAE amends e-invoicing regulations

Ministry of Finance building

The UAE Ministry of Finance issued Ministerial Decision No. 197 of 2026, amending certain provisions of Ministerial Decision No. 243 of 2025 concerning the Electronic Invoicing System.

Under the decision, transactions between members of the same tax group will be temporarily exempt from e-invoicing requirements for 24 months, starting Jan. 1, 2027, giving businesses additional time to adapt to the system.

The decision also amends Article 11 concerning the storage of electronic invoices and electronic credit notes. Persons subject to the system must retain these documents and related data for the periods stipulated under the Tax Procedures Law and ensure they are made available to the Federal Tax Authority (FTA) upon request.

The decision also removes the previous requirement to store electronic invoicing data within the UAE, while maintaining obligations to retain records and make them available for tax compliance purposes.

The amendments further repeal provisions relating to "system failure" under Ministerial Decision No. 243 of 2025, including the requirement to notify the FTA within two business days of a system failure. This is implemented through the repeal of Article 12 and the deletion of the corresponding definition from Article 1.

The ministry said the amendments aim to provide businesses with greater flexibility and reduce the operational burden associated with implementing the e-invoicing system.

The ministry added that the decision took effect on Oct. 1, 2026.