UAE E-Invoicing Fines Introduced Under Cabinet Decision 106

Ministry of Finance Issues Resolution on E-Invoicing Administrative Fines

By Steven Ireland Published: Jan. 26, 2026 Last Updated: Jan. 30, 2026

The UAE Ministry of Finance has issued Cabinet Decision No. 106 of 2025, establishing administrative fines for non-compliance with the country’s Electronic Invoicing (e-invoicing) system legislation. The resolution targets all entities required to implement Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System, while entities that voluntarily adopt the system are exempt from penalties until they become subject to mandatory compliance.

The resolution sets out specific violations and corresponding administrative penalties, including:

Violation	Administrative Penalty
Failure by the issuer to implement the Electronic Invoicing System, including failure to appoint an accredited service provider within the prescribed timeline	AED 5,000 per month of delay
Failure to issue and transmit an electronic invoice to the recipient through the Electronic Invoicing System within the prescribed timeline	AED 100 per invoice, up to AED 5,000 per month
Failure to issue and transmit an electronic credit note to the recipient through the system within the prescribed timeline	AED 100 per credit note, up to AED 5,000 per month
Failure by the issuer to notify the Federal Tax Authority (FTA) of a system failure within the prescribed timeline	AED 1,000 per day of delay
Failure by the recipient to notify the FTA of a system failure within the prescribed timeline	AED 1,000 per day of delay
Failure by the issuer or recipient to notify the accredited service provider of changes to data registered with the FTA within the prescribed timeline	AED 1,000 per day of delay

The UAE will implement e-invoicing in a phased, mandatory rollout, preceded by an optional voluntary pilot starting 1 July 2026. The mandatory implementation schedule is as follows:

1 January 2027: Large businesses with annual revenue of AED 50 million or more

1 July 2027: Smaller businesses with annual revenue below AED 50 million

1 October 2027: Government entities

The phased approach is designed to give businesses sufficient time to comply with the new requirements while ensuring transparency and efficiency in the UAE’s taxation framework.