The UAE Ministry of Finance has introduced amendments to the Electronic Invoicing System under Ministerial Decision No. 197 of 2026, effective 1 October 2026, to provide businesses with greater flexibility and reduce administrative burdens.

Key Changes

1. Temporary Relief for Tax Group Transactions
From 1 January 2027, transactions between members of the same tax group will be temporarily excluded from e-invoicing requirements for 24 months, until the end of December 2028.

2. Overseas Data Storage Permitted
Businesses may store electronic invoices, credit notes, and related records outside the UAE, provided they comply with applicable record-retention requirements and make the records available to the Federal Tax Authority (FTA) when requested.

3. System Failure Reporting Requirement Removed
The specific requirement to notify the FTA within two business days of an e-invoicing system failure has been removed under the amended regulations.

What This Means for Businesses

These amendments provide additional flexibility for tax groups and businesses using international data-storage systems while reducing certain administrative obligations. However, businesses must continue to comply with applicable e-invoicing requirements and implementation deadlines.

Source: gulfnews.com