UAE Defines Penalties for Non-Compliance with the E-Invoicing System
Swathy
Published on Nov 28, 2025/1 min read
The UAE Ministry of Finance issues Cabinet Decision No. 106 of 2025, defining penalties for e-invoicing non-compliance, effective from the mandate rollout timeline.
The UAE Ministry of Finance has issued Cabinet Decision No. 106 of 2025, 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.
