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The UAE Ministry of Finance has officially published Cabinet Decision No. 106 of 2025.This Decision establishes penalties applicable to e‑Invoice violations, which are outlined as follows:
This Decision reaffirms the FTA’s commitment to establishing e‑Invoicing as a core and enforceable element of the VAT framework. It signifies a shift from a procedural rollout to a comprehensive regime, where timely, accurate, and system‑driven invoicing is continuously monitored and enforced in real time.
While a robust administrative penalties regime is already in effect and operational on the EmaraTax portal, it will be interesting to observe how the newly introduced e-Invoicing penalties integrate with the existing framework.
BDO UAE offers comprehensive support to businesses preparing for the implementation of e‑Invoicing in the UAE. Our end‑to‑end e‑Invoicing solution is designed to help organizations efficiently address upcoming regulatory requirements. We would be pleased to partner with you to ensure a smooth and seamless transition to e‑Invoicing.
|
S.No. |
Violation |
Administrative Penalty Amount (in AED) |
| 1 | Failure by the Issuer to implement the Electronic Invoicing System or appoint an Accredited Service Provider (‘ASP’) | AED 5,000 in case of delay for each month or part thereof |
| 2 | Failure by the Issuer to issue and transmit an Electronic Invoice or Electronic Credit note to the Recipient through the Electronic Invoicing System | AED 100 for each Electronic Invoice or Electronic Credit note (capped at a maximum of AED 5,000 per calendar month) |
| 3 | Failure by the Issuer or the Recipient to notify the Authority of a System Failure | AED 1,000 for each day of delay or part thereof |
| 4 | Failure by the Issuer or the Recipient to notify the appointed ASP of changes to the data registered with the Authority |
This Decision reaffirms the FTA’s commitment to establishing e‑Invoicing as a core and enforceable element of the VAT framework. It signifies a shift from a procedural rollout to a comprehensive regime, where timely, accurate, and system‑driven invoicing is continuously monitored and enforced in real time.
While a robust administrative penalties regime is already in effect and operational on the EmaraTax portal, it will be interesting to observe how the newly introduced e-Invoicing penalties integrate with the existing framework.
BDO UAE offers comprehensive support to businesses preparing for the implementation of e‑Invoicing in the UAE. Our end‑to‑end e‑Invoicing solution is designed to help organizations efficiently address upcoming regulatory requirements. We would be pleased to partner with you to ensure a smooth and seamless transition to e‑Invoicing.