The Ministry of Finance has issued Ministerial Decision No. 197 of 2026, amending Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System to clarify certain requirements and reduce the operational burden on businesses in the UAE. The decision took effect on October 1, 2026.
Transactions between members of the same Tax Group will be treated as Excluded Transactions for 24 months starting January 1, 2027. The temporary exclusion gives businesses more flexibility and time to adapt to the system.
Article 11 on the storage of electronic invoice data has also been amended. Businesses subject to the system must retain all electronic invoices, electronic credit notes and associated data for the period set out in the Tax Procedures Law, and be able to provide them to the Federal Tax Authority on request. The previous requirement to store this data within the UAE has been removed, shifting the focus from where records are kept to whether they are retained and accessible for tax compliance.
The decision also removes the provisions on “System Failure”. Article 12 has been repealed, along with the related definition in Article 1. This eliminates the requirement to notify the Federal Tax Authority within two business days of a system failure.
The Ministry said the amendments reflect its commitment to ease of doing business, giving companies greater flexibility during implementation while keeping regulatory requirements efficient and business-friendly.
News Source: Emirates News Agency
