Digital transformation is reshaping tax compliance across the UAE. With the introduction of Cabinet Decision No. 100 of 2025, effective 29 September 2025, the UAE Ministry of Finance has amended Articles 59 and 60 of the VAT Executive Regulations to establish a strong legal foundation for mandatory e-invoicing, which is scheduled to launch in July 2026.

This move aligns with the UAE’s vision for a fully digital, transparent, and efficient tax ecosystem, ensuring businesses operate with greater accuracy and accountability.

Overview: What’s Changing in the VAT Executive Regulations

The 2025 amendments are designed to ensure all VAT-registered entities follow a standardised, electronic invoicing process. Here’s what’s new:

1. Elimination of Simplified Invoices

The concept of simplified invoices has been removed. Businesses that previously issued them for supplies below AED 10,000 must now issue a full e-invoice, regardless of value.

2. E-Invoices for Zero-Rated Transactions

All zero-rated supplies, including exports of goods and services to non-UAE customers, now require e-invoices. This expands compliance obligations for cross-border businesses.

3. Revised Credit Note Requirements

Credit notes no longer need to display the original and corrected invoice values alongside the difference. It is sufficient to show only the adjusted amount with the applicable VAT.

4. Withdrawal of Administrative Exceptions

Administrative exceptions will no longer apply. Current reliefs or waivers already given to businesses are expected to be withdrawn once e-invoicing takes effect, subject to any clarifications from the FTA.

5. Updated Record-Keeping Requirements

Previous rules on the storage and authenticity of electronic invoices are no longer applicable. New, specific e-invoicing record-keeping standards will follow, with details to be issued by the FTA.

What These Amendments Mean for Businesses

These updates mark a significant shift in VAT compliance across the UAE. Every registered business must now align operations, systems, and reporting processes with e-invoicing requirements.

Key Implications:

• Broader Compliance Scope: All supplies, including low-value transactions and exports, now fall under e-invoicing.
• Technology Readiness: ERP and accounting systems must be integrated with the FTA e-invoicing platform, most likely through Accredited Service Providers (ASPs), once the FTA issues the official list.
• No Exemptions: No VAT-registered entity will be exempt once the rules are fully in force.
• Operational Adjustments: Finance teams must adapt workflows for digital invoicing and record-keeping.
• Pending Guidance: Businesses should expect further details on implementation rules, a possible phased rollout plan, and penalties for non-compliance..

Preparing for the 2026 E-Invoicing Mandate

Although detailed implementation guidelines are still awaited, businesses should not delay their preparations. Proactive planning now will ensure smooth compliance later.

Here’s how to get ready:

1. Conduct a VAT readiness assessment to identify gaps in invoicing and reporting.
2. Upgrade ERP and accounting systems to support FTA-compliant e-invoicing integration.
3. Stay updated on the FTA’s list of Accredited Service Providers (ASPs).
4. Train finance teams on new invoice and credit note procedures.

How German Fintax Consultancy Can Help

Adapting to regulatory change requires more than just software; it requires a strategy. At German Fintax Consultancy, our VAT experts in UAE help businesses confidently transition to the e-invoicing framework.

Our Services Include:

• VAT & Invoicing Readiness Assessments
• ERP and System Integration Planning
• E-Invoicing Compliance Implementation
• Continuous Updates on FTA Announcements

Take Action Now — Stay Ahead of Compliance Deadlines

The countdown to July 2026 has already begun. Don’t wait for the last minute — start preparing today to avoid penalties and operational challenges.

Contact German Fintax Consultancy now to schedule a VAT compliance review and ensure your systems are ready for the UAE’s new e-invoicing era.