UAE amends e-invoicing rules: Who benefits and what changes?
Under the revised rules, business transactions between members of the same tax group will be treated as excluded transactions for 24 months from January 1, 2027
19 October, 2026
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The UAE Ministry of Finance has amended its electronic invoicing regulations, introducing a 24-month exclusion for certain transactions within tax groups and removing the requirement to store electronic invoice records inside the country.
The changes were introduced under Ministerial Decision No. 197 of 2026, which amends Ministerial Decision No. 243 of 2025 governing the Electronic Invoicing System, a WAM report said.
Tax groups get temporary exclusion
Under the revised rules, business transactions between members of the same tax group will be treated as excluded transactions for 24 months from January 1, 2027.
Read more: UAE changes e-invoicing approval rules, gives existing providers 30 days to comply
The temporary exclusion gives affected businesses additional time to prepare for the electronic invoicing requirements while allowing them greater flexibility in managing transactions within their tax groups.
UAE storage requirement removed
The decision also revises Article 11, which governs the storage of electronic invoices and electronic credit notes.
Businesses covered by the system must retain electronic invoices, electronic credit notes and related data for the period prescribed under the Tax Procedures Law. They must also ensure that the records can be provided to the Federal Tax Authority (FTA) upon request.
However, the amended provision removes the requirement for these records to be stored within the UAE. The revised rules focus instead on record retention and accessibility for tax compliance purposes, regardless of where the data is held.
System failure provisions repealed
The amendments also repeal Article 12, removing the provisions governing system failures under the previous regulations.
As part of this change, the requirement to notify the FTA of a system failure within two business days has been removed. The related definition of “System Failure” has also been deleted from Article 1.
The changes alter the compliance requirements for businesses subject to the electronic invoicing framework, particularly those dealing with transactions within tax groups or maintaining invoice records outside the UAE.
The Ministry said the amendments are intended to reduce operational burdens, provide greater flexibility during implementation and support the ease of doing business in the country.
Ministerial Decision No. 197 of 2026 took effect on October 1, 2026.




















