The Ministry of Finance has issued a new Cabinet Decision revising administrative penalties under the UAE e-invoicing framework following stakeholder feedback. The change comes as businesses with annual revenue of AED50 million or more reach their 30 October deadline to appoint an accredited service provider
ABU DHABI: The UAE Ministry of Finance has announced revised administrative penalties under the country’s electronic invoicing framework. The changes follow business feedback and aim to make compliance requirements clearer and more proportionate.
Announced on October 30, the new Cabinet Decision No. 173 of 2026 replaces Cabinet Decision No. 106 of 2025. It introduces changes as businesses prepare for mandatory e-invoicing implementation in 2027.
New Penalties Capped at AED 50,000
Under the revised framework, businesses that fail to meet applicable e-invoicing implementation requirements face an initial AED 5,000 penalty. An additional AED 5,000 applies for every month or part of a month that non-compliance continues. However, the total penalty for these violations cannot exceed AED 50,000 within any 12 consecutive months.
The Ministry has also removed the previous penalty for failing to notify the Federal Tax Authority about an electronic invoicing system failure. Importantly, businesses acting as both invoice issuers and recipients will face only one administrative penalty for the same violation.
Major UAE E-Invoicing Deadline Passes
The announcement coincides with the October 30 deadline for businesses earning AED 50 million or more annually to appoint an accredited e-invoicing service provider. These businesses must implement the system by January 1, 2027. Companies earning below AED 50 million have until March 31, 2027, to appoint a provider and must implement e-invoicing by July 1, 2027.
Impact to Expect
The revised penalties should reduce compliance uncertainty while protecting businesses from excessive or duplicate fines.
However, implementation deadlines remain unchanged. Companies must complete provider appointments, technical integration and invoicing system preparations to meet the UAE’s digital tax requirements.
