On 30 October 2026, the UAE Ministry of Finance announced a new Cabinet Decision on the administrative penalties related to the UAE e-invoicing system, replacing Cabinet Decision No. 106 of 2025. The Ministry states that the amendments follow feedback from stakeholders and aim to provide a clear, proportionate and practical compliance framework ahead of mandatory e-invoicing.
The main change is a proportionate penalty for non-compliance by the Issuer and the Recipient with e-invoicing implementation obligations: AED 5,000 for the first violation, and AED 5,000 for each month, or part of a month, in which the non-compliance continues, up to a maximum of AED 50,000 for these violations in any twelve consecutive months.
The new decision removes the penalty that previously applied when the Issuer or the Recipient failed to notify the Authority of a system failure. To avoid duplicate penalties, where the same person acts as Issuer, Recipient or both in respect of the same violation, only one administrative penalty is imposed.
According to the Ministry, the revised penalties are designed to better match the nature of each obligation, encourage timely compliance, reduce the administrative burden on businesses and give them greater certainty as they prepare for the transition to e-invoicing.
Source: Ministry of Finance, UAE