UAE businesses that fail to meet e-invoicing obligations face a fine of AED5,000 for a first violation and AED5,000 for each month the breach continues, capped at AED50,000 in any 12 consecutive months, under a new Cabinet decision.
The Ministry of Finance announced the updated administrative penalties on Friday. The decision replaces Cabinet Decision No. 106 of 2025.
The ministry said the changes respond to feedback from stakeholders and aim to give businesses more clarity ahead of mandatory e-invoicing, Al Bayan reported.
What changed
The updated framework covers failures by issuers and recipients to implement the e-invoicing system, and failures to appoint an accredited service provider within the set deadlines.
The decision cancels a penalty that had been proposed for issuers or recipients who do not notify the Federal Tax Authority of a system failure.
It also bars double penalties. When the same person acts as issuer, recipient or both in relation to the same violation, only one administrative fine applies.
The ministry said the update is meant to support compliance and reduce unnecessary administrative burdens on businesses.
