Ministry of Finance has announced penalties for non-compliance with the Electronic Invoicing System under Cabinet Decision No. 106 of 2025.
The UAE Ministry of Finance has detailed penalties for violations of the country’s Electronic Invoicing System under Cabinet Decision No. 106 of 2025.
The Decision, approved by the UAE Cabinet and presented by the Minister of Finance, follows a review of Federal Decree-Law No. 28 of 2022 on Tax Procedures and Federal Decree-Law No. 8 of 2017 on Value Added Tax.
The penalties target breaches of the Electronic Invoicing System rules.
Key Penalties
System Implementation and Transmission (Issuer):
- Failure to implement the system, including appointing an Accredited Service Provider on time: AED 5,000 per month or part thereof.
- Failure to issue and transmit an Electronic Invoice on time: AED 100 per invoice, capped at AED 5,000 per month.
- Failure to issue and transmit an Electronic Credit Note on time: AED 100 per note, capped at AED 5,000 per month.
Notifications and System Downtime (Issuer and Recipient):
- System Failure: any technical malfunction preventing mandatory compliance.
- Failure to notify the Authority of a System Failure: AED 1,000 per day of delay.
- Failure to inform the appointed Accredited Service Provider of changes to registered data: AED 1,000 per day of delay.
Cabinet Decision No. 106 of 2025 will be published in the Official Gazette and comes into effect the day after publication.
