What are the penalties for non-compliance with e-invoicing in the UAE?

The UAE has introduced administrative penalties for businesses that are required to implement e-invoicing but fail to meet their obligations.

Under Cabinet Decision No. 106 of 2025, a business can face an administrative fine of AED 5,000 per month for failing to implement the Electronic Invoicing System or failing to appoint an approved service provider within the required timeframe.

There is also a penalty of AED 100 for each electronic invoice that is not issued or sent within the required timeframe, subject to a maximum of AED 5,000 per month. The same AED 100 per electronic credit note penalty applies when an electronic credit note is not issued or sent within the required timeframe, also subject to a monthly maximum of AED 5,000.

Additional penalties can apply where a business fails to notify the FTA about a malfunction in the e-invoicing system within the required timeframe.

These penalties apply to businesses that are mandatorily subject to e-invoicing. Businesses adopting the system voluntarily are not subject to these e-invoicing administrative penalties until they become mandatorily subject to the system.

Key points

• Failure to implement e-invoicing can result in AED 5,000 per month.
• Late or missed electronic invoices can attract AED 100 per invoice.
• Late or missed electronic credit notes can attract AED 100 per credit note.
• Additional penalties may apply for certain reporting or system-related failures.
• Preparing early can help businesses avoid compliance issues and penalties.