Khaberni - The UAE is preparing with the start of the year 2026 to implement a range of new laws and decisions adopted by the official authorities, aimed at enhancing the efficiency of government work, supporting economic growth, and regulating various vital sectors in the country.
The legislation includes updates in the tax systems, decisions related to community security, education, regulation of worship practices, including a shift to digital transformation through electronic invoicing systems, reflecting the country's direction towards establishing a more effective and sustainable legislative system.
According to the UAE Ministry of Finance, Federal Decree-Law No (17) for the year 2025 will come into effect at the beginning of January (January) 2026, and the decree includes:
• Enhancing the efficiency of tax refund mechanisms by defining clear time periods and more precise standards.
• Regulating audit and inspection processes, granting the Federal Tax Authority broader powers to ensure compliance.
• Enhancing taxpayers' rights through providing clear and simplified grievance mechanisms.
• Improving the level of tax transparency to align with international best practices.
National Anti-Drugs Agency
In early January 2026, the UAE will begin implementing Federal Decree-Law No (2) for the year 2025 to establish a unified national agency dedicated to combating drugs across the state.
The law aims to unify powers among the relevant authorities to prevent overlapping jurisdictions and improve the efficiency of response alongside enhancing the state's monitoring, follow-up, community awareness, and developing cooperation mechanisms between police, customs, health, and education.
Implementation of Electronic Invoicing System
In July (July) 2026, the implementation of the electronic invoicing system will become mandatory for companies, with penalties imposed on violators to ensure compliance with the digital transformation of financial transactions and the documentation of commercial operations more precisely and transparently.
The system aims to digitize invoices and reduce tax manipulation, improving compliance, and relies on electronic linking between companies and the Federal Tax Authority to ensure instant transaction documentation.
Standardizing the Friday Prayer Timing
The General Authority for Islamic Affairs, Endowments and Zakat announced a comprehensive and unified adjustment to the timing of the Friday prayer sermon across all mosques in the UAE starting January 2, 2026.
According to the decision Friday prayer will be held across all Emirates at 12:45 PM. The adjustment aims to standardize the daily agenda for citizens and residents, facilitating the organization of the weekly workday, in addition to easing travel and movement.
Adjustments to Value Added Tax (VAT)
With the start of the year 2026, the work will begin with modifications to the value tax system that include:
• Simplifying compliance procedures for small and medium-sized enterprises.
• Defining precise time periods for tax refund operations.
• Enhancing tax inspection systems through more advanced digital tools.
• Raising the level of transparency and facilitating procedures for registered businesses.
