Most UAE businesses are outside Pillar Two – but the reasoning behind that answer is often where problems begin. Why QDMTT is a data and governance challenge first.
Answers to the ten e-invoicing questions we are asked most often – from VAT groups and B2C sales to exports and customers not yet on the system.
The FTA’s TAXP010 clarifies what counts as a Free Zone or Designated Zone under Corporate Tax, Excise Tax and VAT – and why each law must be assessed separately.
businesses to appoint an Accredited Service Provider (ASP) and register for the UAE Electronic Invoicing System. Key points are as follows: 1. Deadline and Applicability (Ministerial Decision No. 244 of 2025, as amended by Ministerial Decision No. 66 of 2026) • Registration deadline: 30 October 2026 (extended from 31
The UAE FTA and Ministry of Finance introduced key 2026 tax compliance updates affecting transfer pricing, Small Business Relief, Pillar Two, and Free Zone entities. Downward transfer pricing adjustments now require enhanced disclosure, arm’s-length support, and evidence of corresponding foreign adjustments. Small Business Relief has been extended through 2029 for taxpayers with revenue below AED 3 million. In-scope MNEs must comply with QDMTT registration requirements, including the 30 November 2026 deadline for certain entities. From 1 January 2026, qualifying Free Zone distributors must meet ISRS 4400 AUP requirements, with reports due within 30 days of the Corporate Tax return deadline.
1. Cabinet Decision No. 17 of 2026: Amendments to Executive Regulation on UAE Tax Procedures • Extended Record Keeping (Refund Cases): Records must now be kept for an additional two years (seven in total) for the pending refund applications. • Voluntary Disclosure for Errors: Errors affecting tax payable over AED 1
New Article 54(3) of the Executive Regulation — inserted by Article 2 of Cabinet Decision No. 149 of 2026 A new Clause 3 has been added to Article 54, providing that Input Tax may not be recovered on any supply whose value exceeds an amount to be specified in a decision of the Minister of Finance, where the considerati
3rd September 2026 On 22 July 2026 the Federal Tax Authority issued Decision No. 13 of 2026, setting out the checks a business is expected to carry out on its suppliers and its purchases before it recovers the VAT paid on them. It takes effect on 1 October 2026, and turns what many businesses treat as good housekeeping
The UAE is advancing its vision through two pivotal fiscal reforms: the R&D Tax Credit and mandatory E-Invoicing. Effective from January 2026, the R&D regime offers tiered tax credits up to 50% to incentivize technical innovation in high-growth sectors, based on their research spending. Simultaneously, the phased rollout of the nation-wide E-Billing System (starting January 2027) mandates real-time reporting via the Peppol network. By combining financial incentives for creativity with a digital-first compliance infrastructure, the UAE is creating a transparent, high-tech ecosystem that reduces operational costs, eliminates tax gaps, and reinforces its status as a global hub for future-proof business.
During the last quarter of 2025, the UAE tax landscape moved decisively into an implementation and enforcement phase across corporate tax, VAT, excise and e-invoicing. Key Federal Decree-Laws amended the Tax Procedures Law and VAT Law, introducing hard limitation periods for refunds, enhanced audit powers and stricter input tax controls. Targeted corporate tax rules set binding timelines for qualifying investment funds and REITs. A new penalty framework for mandatory e-invoicing and a redesigned, sugar-content–based excise regime for sweetened drinks will apply from early 2026, demanding immediate readiness from taxpayers across sectors.
The UAE is advancing its tax framework with key developments in e-invoicing, Free Zone Corporate Tax qualification rules, and excise tax reforms. A phased e-invoicing rollout begins in July 2026, enhancing VAT compliance via a decentralized model. Updated Free Zone rules redefine qualifying activities and commodities, impacting CT benefits. From January 2026, a tiered-volumetric excise tax on sugar-sweetened beverages will replace the flat-rate model, linking tax rates to sugar content.
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