UAE Regulatory Updates 2026
Concise, actionable updates for business owners.
The E-Invoicing Revolution (July 2026)
Begins July 1, 2026, for selected large taxpayers.
B2B and B2G transactions. Revenue ≥ AED 50M must appoint an ASP by July 31, 2026.
No more manual PDFs. ERPs must connect to an ASP for real-time validation.
New "5-Year Rule" for VAT Refunds
Strict 5-year statute of limitations for input tax refunds.
Credits pre-Jan 1, 2021, expired on Jan 1, 2026.
FTA has expanded investigative authority, including unannounced inspections.
Anti-Money Laundering (AML) "Zero Tolerance"
"Should Have Known" model. Liable if you missed suspicious funds sign.
VASPs explicitly covered. Crypto KYC must be bank-grade.
Ensure goAML registration for reporting suspicious transactions.
Corporate Tax: Small Business Relief (SBR)
Revenue ≤ AED 3M can elect for SBR.
Treated as no taxable income; exempt from transfer pricing docs.
Exceeding threshold in any prior period causes loss of eligibility.
Economic Substance Regulations (ESR)
File Notification within 6 months if performing Relevant Activities.
Substance Report due within 12 months if income earned.
Fines up to AED 400,000 for failure to file or meet substance test.
Key Deadlines Comparison (2026)
| Regulation | Date | Action Required |
|---|---|---|
| VAT Amendments | Jan 1, 2026 | Deadline for pre-2021 refund claims. |
| Sugary Drink Tax | Jan 1, 2026 | New tiered tax based on sugar concentration. |
| Banking Security | Mar 2026 | Replacement of SMS OTPs with in-app authentication. |
| E-Invoicing | Jul 1, 2026 | Launch of Pilot Phase & Voluntary Adoption. |
| E-Invoicing (Large) | Jul 31, 2026 | Deadline to appoint an ASP (for revenue >50M). |