Abu Dhabi, 19 October 2026

The Ministry of Finance has issued Ministerial Decision No. 197 of 2026, amending certain provisions of Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System. The amendments introduce targeted changes aimed at providing greater clarity on certain requirements and supporting the implementation of Electronic Invoicing System and reducing operational burdens on businesses in the UAE.

The Decision introduces a temporary exclusion for Business Transactions between Persons that are members of the same Tax Group for a period of twenty-four (24) months commencing on 01 January 2027, whereby such transactions will be treated as Excluded Transactions throughout this period, giving businesses greater flexibility and more time to adapt to the system.

The Decision also amends Article 11 on the Storage of Electronic Invoice and Electronic Credit Note Data. Under the amended provision, any Persons subject to the Electronic Invoicing System must retain all Electronic Invoices, Electronic Credit Notes and any associated data for the period prescribed under the Tax Procedures Law, and ensure that such records can be provided to the Federal Tax Authority upon request.  In addition, the amendment removes the previous requirement that such data be stored within the UAE, thereby shifting the focus from the location of storage to the retention and accessibility of records for tax compliance purposes.

In addition, the Decision removes the provisions relating to “System Failure” under Ministerial Decision No. 243 of 2025, including the requirement to notify the Federal Tax Authority of a System Failure within two Business Days from the date of occurrence of the System Failure, through the repeal of Article 12 and the deletion of the related definition from Article 1.

The amendments reflect the Ministry’s commitment to facilitating the ease of doing business in the UAE by reducing operational burdens on businesses, providing greater flexibility during the implementation of the Electronic Invoicing System, and ensuring that regulatory requirements support an efficient and business-friendly environment.

It is noted that the Decision became effective from 1 October 2026.