UAE Updates Administrative Penalties for Nationwide Electronic Invoicing System

The UAE Ministry of Finance has issued a new Cabinet Decision regarding administrative penalties for the nationwide eInvoicing system, officially repealing Cabinet Decision No. 106 of 2025, according to the Emirates News Agency (WAM).

Under the revised penalty framework, an initial fine of AED 5,000 applies to issuers or recipients for a first violation of eInvoicing implementation requirements. Ongoing non-compliance incurs a continuing penalty of AED 5,000 per month, subject to an aggregate cap of AED 50,000 over any 12 consecutive months.

Additionally, the new decision eliminates the administrative penalty previously imposed on issuers or recipients who failed to notify tax authorities in the event of a system failure. The Ministry noted that the updated structure is intended to enhance clarity and provide proportional certainty for businesses preparing for mandatory digital compliance.