UAE Revises E-Invoicing Penalties, Setting Dh50,000 Annual Cap on Implementation Violations

The UAE Ministry of Finance has announced revisions to the administrative penalties governing non-compliance with the national electronic invoicing framework, replacing Cabinet Decision No. 106 of 2025, according to Gulf Business.

Under the amended decision, businesses failing to meet e-invoicing implementation obligations face an initial fine of Dh5,000. Continued non-compliance incurs a penalty of Dh5,000 per month or part thereof, capped at a maximum aggregate penalty of Dh50,000 in any twelve consecutive months.

The revised framework relaxes several earlier enforcement measures following stakeholder consultations. Authorities have abolished the administrative fine previously levied on issuers and recipients for failing to notify the government of an e-invoicing system malfunction, removing daily recurring penalties.

The new rules also safeguard businesses against duplicate penalties. Under the updated provisions, only a single administrative penalty can be levied against an entity for the same infraction, regardless of whether the business functions as an invoice issuer, recipient, or both.

The Ministry confirmed that the revised penalty structure does not exempt entities from statutory implementation deadlines or broader electronic invoicing obligations as the country prepares for the phased rollout of mandatory e-invoicing.