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 overhauled VAT refund procedures for citizens building new homes under the Zero Government Bureaucracy Programme. The update reduces application data fields by 50% and processing times by 80%. A dedicated smart application called 'Maskan' was also launched to verify claims.
The UAE Federal Tax Authority has enforced Decision No. 17 of 2026, introducing stricter conditions for recovering input VAT on employee benefits. Following amendments to VAT Executive Regulations, employment contracts or HR policies alone are no longer sufficient to claim VAT recovery. Input tax will become an unrecoverable business expense if employers fail to meet detailed requirements across six expense categories.
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