UAE Updates Administrative Penalties Under National eInvoicing Framework

The UAE Ministry of Finance has issued a new Cabinet Decision governing administrative penalties within the national eInvoicing framework, replacing Cabinet Decision No. 106 of 2025. According to the Emirates News Agency (WAM), the measure introduces a revised penalty scheme designed to be more proportionate for both issuers and recipients of electronic invoices.

Under the newly established rules, an initial non-compliance violation results in an administrative penalty of AED 5,000. Any continued non-compliance incurs an additional AED 5,000 for each subsequent month, subject to a maximum aggregate limit of AED 50,000 within any 12-month period.

The Cabinet Decision also eliminates the previous administrative penalty that sanctioned taxpayers for failing to notify the Federal Tax Authority of a system failure.