UAE Issues Revised Electronic Invoicing System Penalties Under Cabinet Decision

The United Arab Emirates Ministry of Finance has published Cabinet Decision No. 173 of 2026, setting out revised violations and administrative penalties associated with the national Electronic Invoicing System. According to tax compliance firm Sovos, the new regulation repeals Cabinet Decision No. 106 of 2025 and takes effect the day after its publication in the Official Gazette.

The decree applies directly to mandated issuers and recipients required to use the system, while businesses participating voluntarily are exempt. In instances where an entity acts as both issuer and recipient for the same violation, only a single penalty will be imposed.

Under the schedule of fines, failure to implement the system, appoint an Accredited Service Provider (ASP), or maintain recipient compliance incurs an initial penalty of AED 5,000, followed by AED 5,000 for each subsequent month or partial month of non-compliance, capped at AED 50,000 over 12 consecutive months.

Additional penalties include AED 100 per unissued or untransmitted electronic invoice or electronic credit note, each capped at AED 5,000 per calendar month. Failing to notify an ASP of modifications to data registered with the tax authority carries a fine of AED 250 per day or part of a day, subject to a monthly ceiling of AED 5,000.