Mandatory E-Invoicing in UAE: Businesses to Face Fines for Non-Compliance, Full Details Inside
The resolution also targets delays in reporting technical issues. Businesses are required to notify the Federal Tax Authority (FTA) immediately if there is a system malfunction or disruption in the e-invoicing platform.
The United Arab Emirates ( UAE ) has mandated the E-invoicing rules. The introducing fines for companies that do not follow the mandatory Electronic Invoicing (e-invoicing) rules.
The UAE Ministry of Finance has issued Cabinet Resolution No. (106) of 2025, which outlines the administrative penalties that will apply to entities that fail to comply with the country’s e-invoicing regulations.
The new resolution applies to all businesses that are required to adopt the e-invoicing system under the earlier rules issued by the Ministry of Finance. Companies and entities choosing to use e-invoicing voluntarily are not subject to fines until they become mandatorily required to use the system.
Under the resolution, several types of violations will attract specific penalties. Businesses that fail to implement an approved e-invoicing system or do not appoint an accredited service provider within the required time limit may be fined up to AED 5,000 for each month or part of a month of delay.
In addition, companies that do not issue or transmit electronic invoices within the specified timeframe will face a fine of AED 100 for each invoice, with a maximum of AED 5,000 per calendar month. The same structure applies to electronic credit notes, which must also be issued and sent on time.
The resolution also targets delays in reporting technical issues. Businesses are required to notify the Federal Tax Authority (FTA) immediately if there is a system malfunction or disruption in the e-invoicing platform.
Failure to report such a system failure within the specified timeframe can result in a fine of AED 1,000 per day, or part thereof. A similar daily fine applies if companies delay informing their appointed service provider about changes to the data registered with the tax authority.
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These new penalties will begin to be enforced as e-invoicing becomes mandatory across the UAE. The mandate will be implemented in mid-2026, with different deadlines for large and smaller businesses, including phased compliance through 2027.
FINES IMPOSED BY UAE FOR NON-COMPLIANCE OF UAE RULES
| Fines | Reasons |
| AED 5,000 | for failing to implement the Electronic Invoicing System or failing to appoint an approved service provider |
| AED 1,000 | for each day of delay, or part thereof, for failing to notify the Federal Tax Authority of any malfunction in the Electronic Invoicing System within the specified timeframe |
| AED 1,000 | for each day of delay, or part thereof, for failing to notify the appointed approved service provider of any modification to the data registered with the Authority within the specified timeframe |
| AED 100 | per electronic invoice not issued or sent within the specified timeframe, with the total administrative fine not exceeding AED 5,000 per month |
| AED 100 | per electronic credit note not issued or sent within the specified timeframe, with the total administrative fine not exceeding AED 5,000 per month |
For businesses operating in the UAE, needed to ensure systems, processes, and staff are ready for the transition to e-invoicing. If you fail to comply could not only lead to financial penalties but may also disrupt normal billing and taxreporting operations.
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