The UAE Ministry of Finance has updated administrative penalties under the upcoming nationwide electronic invoicing regime through a new Cabinet Decision. An initial failure to comply now incurs a fine of AED 5,000, capped at AED 50,000 per 12-month period. The decision also eliminates penalties for failing to report IT system failures to the Federal Tax Authority.
The UAE Ministry of Finance announced a new Cabinet Decision revising administrative penalties under the national eInvoicing system. The updated rules establish an initial AED 5,000 fine for non-compliance, capped at AED 50,000 across a 12-month period. Additionally, the penalty for failing to notify the Federal Tax Authority of a system failure has been abolished.
The UAE Federal Tax Authority has issued updated guidance outlining registration rules for the Pillar Two Top-up Tax on multinational enterprise groups. Qualifying entities whose first in-scope financial year ended prior to 30 April 2026 must complete registration by 30 November 2026. The regime covers groups with consolidated annual global revenues of at least EUR 750 million.
The UAE's new Civil Transactions Law (Federal Decree-Law No. 25 of 2025), which took effect on 1 June 2026, renumbered and codified key provisions on force majeure and hardship. Force majeure is now governed by Article 236 and hardship by Article 224, requiring parties to establish actual impossibility rather than mere commercial difficulty. London Business News reports that businesses contracting under UAE onshore law, including in free zones such as Meydan Free Zone, should adjust their contractual terms and notice procedures.
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