UAE changes e-invoicing rules for tax groups — The National

The UAE Ministry of Finance has made changes to the electronic invoicing system, which will apply to value-added tax from 2027. From January 1, 2027, transactions between companies that are part of the same tax group will be temporarily excluded from the system for two years, The National reports.

Exemption for tax groups

For 24 months, such transactions will have exempt status. The Ministry of Finance said this should give businesses more flexibility and time to adapt to the new system.

David Daly, a partner at Gulf Tax Accounting Group, called the decision positive but noted the need for further clarification. In particular, he said it is necessary to determine whether invoices that tax group members send to counterparties outside the group must be processed through the electronic invoicing system.

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Data storage and deadlines for businesses

The ministry has also changed the rules for storing electronic invoices and electronic credit notes. Companies no longer need to store the relevant data in the UAE, but they must retain invoices, credit notes and related data for the period established by the Tax Procedures Law and provide them to the Federal Tax Authority upon request.

In addition, the requirement to notify the Federal Tax Authority of a system failure within two working days has been abolished. The ministry explained that the changes are intended to reduce the operational burden on businesses and facilitate the implementation of electronic invoicing.

The first key stage of the phased transition to the system is approaching on October 30. By that date, companies with annual revenue of at least 50 million dirhams, or $13.6 million, must appoint an accredited service provider. The deadline was initially set for July 1. Under the UAE's unified model, all transactions meeting the system's criteria must be validated and transmitted through such a provider.