Policy update

Policy & Legal Updates

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

The UAE Ministry of Finance has introduced a revised penalty framework for electronic invoicing non-compliance, replacing Cabinet Decision No. 106 of 2025. The update introduces a Dh50,000 cap on implementation-related fines within any consecutive 12 months and removes penalties for failing to report system failures. The revised rules also ensure companies are not subjected to duplicate fines for the same breach.

Policy & Legal Updates

GCC Inheritance Laws Define Estate and Wealth Transfer Regulations for Expatriates

Inheritance laws across the Gulf Cooperation Council vary significantly based on nationality, religion, and asset location. In the UAE, Federal Decree-Law No. 41 of 2022 governs non-Muslim civil inheritance, while neighboring GCC states enforce distinct testamentary and real estate transfer procedures.

Policy & Legal Updates

UAE Clarifies VAT Fixed Establishment Criteria for Foreign Businesses Deploying Staff

The UAE Federal Tax Authority issued Public Clarification VATP046 addressing amendments under Federal Decree-Law No. 16 of 2024 and Federal Decree-Law No. 16 of 2025. DLA Piper reported that foreign entities may be considered to have a UAE Fixed Establishment without owning property if employees regularly operate from a client site. This standard affects local VAT registration, the reverse charge mechanism, and VAT refund eligibility.

Policy & Legal Updates

UAE Outlines Electronic Invoicing Implementation Deadlines and Administrative Penalties

The UAE Federal Tax Authority has detailed phased deadlines and penalties for its mandatory e-invoicing framework. Large enterprises generating at least AED 50 million annually must select an Accredited Service Provider by 30 October 2026, with full integration required by 1 January 2027. Smaller enterprises must complete integration by 1 July 2027, with non-compliance subject to recurring monthly fines.