E-invoicing rules eased for tax-group transactions and data storage

The Ministry of Finance has amended the Electronic Invoicing System regulations through Ministerial Decision No. 197 of 2026, effective from 1 October 2026. The amendments introduce a temporary 24-month exclusion (from 1 January 2027) for business transactions between members of the same tax group, treating such transactions as excluded from the system during this period. The rules on data storage have been relaxed: instead of requiring data to be stored within the UAE, businesses must now retain all electronic invoices, credit notes and associated data for the period prescribed under the Tax Procedures Law and provide records to the Federal Tax Authority upon request. The amendments also remove the previous requirement to notify the FTA of system failures within two business days, repealing Article 12 and related definitions. These changes aim to reduce operational burdens on businesses during e-invoicing implementation.