Published: 03 November 2026
The UAE Ministry of Finance has issued Ministerial Decision No. 197 of 2026, amending Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System.
Effective 1 October 2026, the amendments introduce important changes to data storage, transaction exclusions, invoice transmission deadlines, and system failure requirements ahead of the mandatory e-invoicing rollout beginning on 1 January 2027.
Key Regulatory Changes
1. Removal of Local Data Storage Requirement
The previous requirement to store electronic invoices and related data within the UAE has been removed.
Businesses must continue retaining electronic invoices, credit notes, and associated data for the legally prescribed period and ensure that records are accessible to the Federal Tax Authority (FTA) upon request.
2. Temporary Exclusion for Intra-Group Transactions
Transactions between members of the same VAT Tax Group are now excluded from mandatory e-invoicing requirements for 24 months, starting 1 January 2027.
This temporary exclusion provides additional flexibility for businesses operating within a single Tax Group.
3. Extension of Invoice Transmission Timeline
The timeframe for issuing and transmitting electronic invoices and credit notes has been extended from 14 calendar days to 14 business days from the date of the transaction.
This requirement remains subject to the applicable VAT invoicing timelines.
4. Removal of System Failure Notification Requirement
The previous obligation to notify the FTA of a system failure within two business days has been removed.
Article 12, which established this notification requirement, has been repealed, and the corresponding definition of “System Failure” has been deleted.
