UAE Defines Penalties for Non-Compliance with the E-Invoicing System

The UAE Ministry of Finance has issued Cabinet Decision No. 106 of 2025open_in_new, published on November 24, 2025, outlining the penalties for non-compliance with the country’s upcoming mandatory e-invoicing and reporting system.

The decision specifies the types of violations and corresponding fines, which will apply according to the official e-invoicing rollout timelines.

Key Penalties

• Failure to implement the e-invoicing system or appoint an Accredited Service Provider:
  5,000 AED (≈1,175 EUR) per month of delay or part thereof.
• Failure to issue and transmit an e-invoice or credit note through the e-invoicing system:
  100 AED (≈23 EUR) per e-invoice, capped at 5,000 AED (≈1,175 EUR) per month.
• Failure to notify the Federal Tax Authority (FTA) of a system failure:
  1,000 AED (≈235 EUR) per day of delay or part thereof.
• Failure to notify the Accredited Service Provider of data updates registered with the FTA:
  1,000 AED (≈235 EUR) per day of delay or part thereof.

These penalties apply only to entities subject to mandatory e-invoicing. Businesses that voluntarily issue, exchange, or report e-invoices and credit notes are not subject to fines under this decision.