UAE Sets Administrative Fines Under Cabinet Decision on E-Invoicing Compliance

The UAE Ministry of Finance has issued Cabinet Decision No. 173 of 2026, establishing specific administrative penalties for businesses that fail to adhere to the country's electronic invoicing regime, sharedserviceslink reported. The new legislation replaces Cabinet Decision No. 106 of 2025 and takes effect the day after its publication in the Official Gazette.

The decision outlines four distinct violations. Mandated entities that fail to set up the system or appoint a certified intermediary—known as an Accredited Service Provider (ASP)—face an initial penalty of AED 5,000. This fine recurs for every month or partial month the non-compliance continues, subject to an annual cap of AED 50,000 across any 12 consecutive months. Recipients that fail to remain compliant are subject to the same penalties.

Transaction-level non-compliance is also penalized. Failing to issue and transmit an e-invoice incurs a fine of AED 100 per document, capped at AED 5,000 per month. The same fee and monthly ceiling apply to failures to issue and transmit electronic credit notes. In addition, companies that neglect to inform their ASP of changes to data registered with the authority face daily fines of AED 250, capped at AED 5,000 per month.

According to the report, the penalty regime applies exclusively to entities mandated to use the system, exempting voluntary participants. Entities serving as both issuer and recipient in a single violation are subject to a single penalty. The UAE's e-invoicing architecture is structured around the Peppol network, using ASPs as operational gateways to transmit invoice data directly to tax authorities.