The Ministry of Finance has introduced Cabinet Resolution No. (106) of 2025, setting out administrative penalties for entities that fail to meet the requirements of the UAE’s Electronic Invoicing System, reinforcing the country’s digital transformation goals and alignment with international best practices.
The UAE’s Ministry of Finance has announced the issuance of Cabinet Resolution No. (106) of 2025, which establishes violations and administrative fines for non-compliance with legislation governing the Electronic Invoicing System. The measure forms part of the UAE’s broader efforts to advance digital transformation and strengthen tax compliance in line with global standards.
The resolution applies to all entities required to implement the Electronic Invoicing System under Ministerial Decision No. (243) of 2025. Persons applying the system voluntarily fall outside the scope of the resolution, and no fines will apply to them until they become mandatorily subject to the regime.
To ensure effective compliance, the resolution sets out specific administrative fines for violations by persons required to implement the system.
These include a monthly fine of AED 5,000 for failing to adopt the Electronic Invoicing System or appoint an approved service provider within the timeframe stipulated in Ministerial Decision No. (244) of 2025.
A fine of AED 100 applies for each electronic invoice or electronic credit note not issued or sent within the prescribed timeframe, capped at AED 5,000 per month in each case.
In addition, fines of AED 1,000 per day, or part thereof, apply for failing to notify the Federal Tax Authority of any malfunction in the system or to inform the appointed approved service provider of modifications to the data registered with the Authority within the specified timeframe.
According to the Ministry, this resolution marks an important milestone in the UAE’s digital transformation agenda and demonstrates the government’s commitment to implementing international best practices as it advances toward a fully integrated digital economy.
