UAE eases e-invoicing rules: tax groups, overseas records

The UAE Ministry of Finance has amended the country's electronic invoicing rules through Ministerial Decision No. 197 of 2026, easing several requirements ahead of the planned rollout in January 2027. According to Gulf Business and Dubai Standard, the changes took effect on 1 October 2026.

The decision amends Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System.

Tax groups get a 24-month exclusion

Transactions between members of the same tax group are treated as excluded from e-invoicing for 24 months, starting 1 January 2027. Dubai Standard reports that the exclusion runs until the end of December 2028. The Ministry said the measure gives businesses more flexibility and time to adapt to the system.

For corporate groups registered as a single tax group for VAT, this means internal invoices between group companies will not need to go through the e-invoicing system during that period. Invoices to customers and suppliers outside the group are not covered by the reported change.

Records can be kept outside the UAE

The earlier requirement to keep e-invoices, e-credit notes and related data inside the UAE has been removed. Companies may now hold these records abroad. They must still retain them for the period set by the Tax Procedures Law and provide them to the Federal Tax Authority (FTA) when requested.

This is relevant for companies that use regional or global cloud systems and had been concerned about data location.

No more two-day failure notification

Article 12 of the original decision has been repealed. Businesses no longer have to notify the FTA within two business days if their invoicing system fails, and the definition of a system failure has been deleted from Article 1.

What businesses should do

Companies preparing for the 2027 rollout should check how the amendments affect their own set-up, particularly if they operate as a tax group or rely on overseas data hosting. The reports do not mention any new monetary or volume thresholds. Businesses should confirm the final text and any FTA guidance with their tax adviser or the Ministry of Finance.