The UAE 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 operational burdens on businesses.
The UAE 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 Decision became effective from 1 October 2026.
The amendments are aimed at providing greater clarity on certain requirements, supporting implementation of the 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. The exclusion applies for a period of 24 months commencing on 1 January 2027. During this period, such transactions will be treated as Excluded Transactions, 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. They must also 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. This shifts the focus from the location of storage to the retention and accessibility of records for tax compliance purposes.
The Decision further removes the provisions relating to “System Failure” under Ministerial Decision No. 243 of 2025. This includes 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. The change is made through the repeal of Article 12 and the deletion of the related definition from Article 1.
This announcement was made on 19 October 2026.
