E-invoicing has begun, the penalty regime has been rebuilt and Small Business Relief is about to expire. What the changes mean for your books, your systems and your filings.
Our flagship guide to the 2026 regulatory cycle, written for owners, finance managers and CFOs operating in the UAE.
DRB Al Hikma Accounting LLC · Business Bay, Dubai · 12 min read
From the July 2026 e-invoicing pilot to the restructured penalty framework effective 14 April 2026, the expiry of Small Business Relief, tighter free zone substance testing and the 15% Domestic Minimum Top-up Tax. A single, plain-language walkthrough of every change and the practical steps to prepare for each one.
Corporate tax above AED 375,000 taxable income
E-invoicing voluntary and pilot phase begins
Annual late payment penalty under the new framework
Last tax periods eligible for Small Business Relief
Short, focused briefings on each of the changes reshaping UAE accounting practice this year.
The voluntary phase has started, structured XML invoicing through an Accredited Service Provider is now a reality, and large businesses face a hard mandatory deadline of 1 January 2027.
The 9% rate is unchanged, but the compliance environment around it is not. Filing windows, the FTA private clarifications, transfer pricing and the expiry of Small Business Relief.
Amendments to the VAT Law took effect on 1 January 2026, and Cabinet Decision No. 100 of 2025 reshaped the Executive Regulations, including removal of the simplified tax invoice.
Cabinet Decision No. 129 of 2025 replaced the daily late payment structure with a 14% annual charge. A separate decision adds a dedicated schedule of e-invoicing fines.
Qualifying Free Zone Person status now has to be evidenced every year. And for the largest groups, the Domestic Minimum Top-up Tax sets a 15% floor.
The dates that determine whether your business is compliant or exposed. Deadlines tied to your financial year will differ, and we can map yours precisely.
| Date | What changes | Who it affects | Status |
|---|---|---|---|
| 1 Jan 2026 | Amendments to the VAT Law and to the Federal Decree-Law on Tax Procedures take effect | All VAT-registered businesses and all taxable persons | In force |
| 1 Apr 2026 | Amended Executive Regulations on Tax Procedures come into effect, including clarified voluntary disclosure procedures | All taxable persons and tax agents | In force |
| 14 Apr 2026 | Restructured administrative penalty framework under Cabinet Decision No. 129 of 2025, late payment at 14% per annum | All taxable persons | In force |
| 1 Jul 2026 | E-invoicing voluntary and pilot phase opens, with selected businesses testing directly with the Ministry of Finance and the FTA | Any business choosing to opt in early | Open now |
| 30 Sep 2026 | Corporate tax return deadline for companies with a 31 December 2025 financial year end, nine months after year end | Calendar-year taxable persons, including free zone entities | Approaching |
| 31 Dec 2026 | Final tax periods for which Small Business Relief can be elected | Resident businesses with revenue under AED 3 million | Approaching |
| 1 Jan 2027 | E-invoicing becomes mandatory for businesses with annual revenue of AED 50 million or more | Large businesses, B2B and B2G transactions | Prepare now |
| 1 Jul 2027 | E-invoicing becomes mandatory for remaining private-sector businesses | SMEs and all other taxable persons | Prepare now |
| 1 Oct 2027 | E-invoicing becomes mandatory for government entities | Federal and local government bodies and their suppliers | Prepare now |
Please note: This calendar summarises publicly announced federal timelines and is provided for general guidance only. It is not tax or legal advice. Deadlines linked to your financial year, free zone or sector may differ, and the authorities may issue further decisions. Please confirm your specific obligations with the Federal Tax Authority or speak to our team before acting.
DRB Al Hikma Accounting LLC helps Dubai businesses register, restructure and report with confidence, from e-invoicing readiness and corporate tax filing to VAT compliance, payroll and audit support.