Major amendments to UAE VAT Regulations to accommodate E-Invoicing

VAT Law Amendments for the Upcoming UAE E-Invoicing Implementation

Key VAT Regulation Changes: The UAE Ministry of Finance has amended the VAT Executive Regulations (Cabinet Decision No. 100 of 2025), eliminating simplified tax invoices and administrative exceptions for businesses under the upcoming e-Invoicing mandate effective July 2026.
Operational Readiness Required: Businesses must assess and upgrade their billing systems, customer master data, and finance processes to comply with the UAE schema for e-Invoices, especially for zero-rated supplies like healthcare and education.
Impact on Retail and B2C Transactions: Retailers and businesses issuing high volumes of low-value invoices will face challenges due to the removal of simplified formats, with B2C transactions expected to fall under e-reporting scope within five years.

Major amendments to UAE VAT Regulations to accommodate E-Invoicing

Amendments to UAE VAT Regulations: The UAE has updated its VAT Executive Regulations to support the implementation of e-invoicing, with changes effective from September 29, 2025, as part of a commitment to roll out e-invoicing by July 2026.
Key Changes in E-Invoicing Requirements: The amendments stipulate that simplified tax invoices are no longer acceptable when issuing electronic invoices, requiring full tax invoices instead. Additionally, all zero-rated transactions will now necessitate a tax invoice, and revised credit note requirements will only require disclosure of the credit note amount and applicable VAT.
Future Steps and Clarity Needed: The Federal Tax Authority (FTA) will not grant exceptions for issuing e-invoices or credit notes, which may affect existing exemptions. An official list of Accredited Service Providers for implementation will be released soon, alongside further details on the rollout timeline, regulations, and transitional guidelines for businesses.

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Cabinet Decision No. 100 of 2025: Key Amendments to VAT Executive Regulations for E-Invoicing

The UAE Ministry of Finance has announced amendments to the VAT Executive Regulations through Cabinet Decision No. 100 of 2025, which prepare for the upcoming e-invoicing mandate by making significant changes to tax invoice and credit note requirements.
Once onboarded, businesses will face new compliance obligations, including mandatory full data on tax invoices and credit notes, the need for updated ERP and billing systems, and alignment of finance and tax processes with electronic issuance and record-keeping.
Companies are urged to act quickly, as many current flexibilities will be eliminated under the e-invoicing regime, making early impact assessments essential for ensuring readiness, avoiding disruptions, and maintaining compliance in the UAE’s digital tax transformation.

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