Are transactions within a VAT tax group excluded from UAE e-invoicing?

Last updated

Yes, for 24 months from 1 January 2027. Ministerial Decision 197 of 2026 lists business transactions between members of the same VAT tax group as excluded transactions for that period. A group may still issue e-invoices between its members voluntarily, but then all the e-invoicing rules apply except penalties.

Other exclusions

The decision also excludes sovereign government transactions not in competition with the private sector, international passenger flights with e-tickets and their ancillary services, international air cargo with an airway bill for 24 months, and financial services that are exempt or zero-rated. The Minister may add others.

Why contractors with group structures care

Groups often move plant hire, labour and management charges between a holding company, a contracting company and a trading company. While the 24-month exclusion lasts, those internal charges do not need e-invoices, but charges to clients and from outside suppliers do.

How SupaJack Construct fits

SupaJack Construct does not transmit e-invoices itself. It stores the company's Peppol endpoint ID, and its setup check flags a company with none on file. The invoices it produces are passed to the company's accredited service provider, which handles transmission and reporting.

Related tools and guides

See the answer on when e-invoicing starts, the VAT guide for contractors, the answer on when a tax invoice must be issued, the answer on tax credit notes, the VAT calculator, finance and VAT in SupaJack Construct and the meaning of e-invoicing.

Worked example

A group contracting company and its plant-hire sister company are in one VAT tax group. Plant-hire charges between them in 2027 and 2028 need no e-invoice. Plant hired to an outside contractor still needs one from the date the company joins the system.

Questions people ask

How long does the exclusion last?

24 months from 1 January 2027.

Can a group e-invoice internally anyway?

Yes, voluntarily, with the rules applying except penalties.

Does it cover sales to outside clients?

No. Only transactions between group members.

Sources

  1. Ministerial Decision No. 197 of 2026 amending Decision No. 243 of 2025 on the Electronic Invoicing System
  2. Ministry of Finance: UAE electronic invoicing

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