The UAE Ministry of Finance has issued a new Cabinet Decision on Administrative Penalties for the country’s eInvoicing framework, replacing Cabinet Decision No. (106) of 2025 and introducing a more proportionate approach to non-compliance.
The United Arab Emirates (UAE) Ministry of Finance has announced on 30 October 2026, a new Cabinet Decision on Administrative Penalties relating to the UAE eInvoicing framework, replacing Cabinet Decision No. (106) of 2025. The amendments follow stakeholder feedback.
The new Decision revises several penalties in the previous Decision to align them better with the nature of the obligations concerned, while maintaining the integrity of the eInvoicing system and encouraging timely compliance. The changes are intended to give businesses greater certainty as they prepare for the introduction of mandatory eInvoicing in the UAE.
Revised penalty for implementation failures
Under the revised framework, the Issuer and the Recipient face a penalty of AED 5,000 for the initial violation of eInvoicing implementation obligations. A further AED 5,000 applies for each month or part thereof during which the non-compliance continues.
The aggregate penalty for these violations is capped at AED 50,000 in any 12 consecutive months.
Penalty for system failure notification removed
The new Decision removes the administrative penalty that the previous Decision imposed on the Issuer or the Recipient for failing to notify the Authority of a system failure.
The change aims to ensure that penalties are applied more appropriately, taking into account the respective responsibilities of the different parties in the eInvoicing ecosystem.
Safeguard against duplicate penalties
The Decision further clarifies how duplicate penalties are to be prevented. Where the same Person acts as an Issuer, a Recipient, or in both capacities in relation to the same violation, only one administrative penalty will be imposed for that violation.
This ensures that the penalty framework is applied fairly and proportionately.
Ministry’s stated approach
The Ministry said the Decision reflects its continued commitment to engaging with the business community and supporting the implementation of the eInvoicing framework in a transparent and proportionate manner.
By refining the penalty regime, it seeks to support compliance, reduce unnecessary administrative burdens and give businesses greater clarity as they prepare for the transition to digital invoicing.
Wider policy objectives
The amendments also support the UAE’s wider digital transformation objectives. They reinforce the country’s commitment to a modern tax administration framework that supports effective compliance, facilitates a business-friendly environment and aligns with international best practices.
