UAE amends e-invoicing regulations as implementation deadline draws closer

The UAE Ministry of Finance has revised its e-invoicing regulations, effective from January 1, 2027. The amendments introduce a two-year exemption for tax group members involved in business transactions, beginning in 2027. This provision grants businesses more flexibility during the transition period to adapt to the new system, according to the Ministry.

However, David Daly, a partner at Gulf Tax Accounting Group, emphasized the need for clearer details, particularly regarding invoices issued to entities outside the tax group. The Ministry also amended Article 11, which governs the storage of electronic invoices and credit notes. From now on, businesses must retain all electronic records for the period stipulated in the Tax Procedures Law and make them available to the Federal Tax Authority upon request.

This adjustment shifts the focus from storage location to record retention and accessibility for tax compliance. Additionally, the Ministry removed the obligation for companies to inform the Federal Tax Authority (FTA) of a system failure within two business days. The amendments aim to ease doing business in the UAE by reducing operational burdens, offering greater flexibility during the e-invoicing implementation, and ensuring regulatory requirements support a business-friendly environment.

The latest move precedes the phased transition to e-invoicing, with the first major compliance requirement set to commence on October 30. The Ministry extended the deadline for appointing an accredited service provider (ASP) for businesses with annual revenue of Dh50 million or more, now set for October 30 from July 1 under Phase 1.

Under the UAE's unified e-invoicing model, all qualifying transactions must be validated and transmitted through an ASP.