UAE VAT Regulations Amended for E-Invoicing

The United Arab Emirates (UAE) has updated its VAT Executive Regulations to accommodate e-invoicing, reaffirming its commitment to implement this system by July 2026.

On September 29, 2025, the Federal Tax Authority (FTA) issued Cabinet Decision No. 100 of 2025, introducing significant changes to the VAT regulations concerning tax invoices and credit notes. Here are the key amendments:

No More Simplified Tax Invoices

Businesses issuing e-invoices are now required to provide full tax invoices, regardless of previous exceptions (such as low-value invoices or transactions with non-tax-registered recipients). Simplified tax invoices will no longer be allowed.

Mandatory E-Invoicing for Zero-Rated Transactions

The previous rule allowed zero-rated transactions to bypass tax invoices if sufficient records were maintained. Under the new regulations, e-invoices must be issued for all zero-rated transactions.

Revised Credit Note Requirements

Under the updated rules, businesses will no longer need to provide the original invoice amount, the corrected amount, and the difference in a credit note. Now, only the credit note amount and the corresponding VAT need to be disclosed.

End of Exceptions for Tax Invoices

The FTA has indicated that exceptions to issuing tax invoices or credit notes will be removed once e-invoicing is implemented. Current exemptions granted to businesses are expected to be withdrawn, though further clarification will be provided.