UAE e-invoicing penalties are set by Cabinet Decision No. 106 of 2025, which lists the administrative fines for breaching the e-invoicing rules under Federal Decree-Law No. 28 of 2022 on Tax Procedures. Fines range from AED 100 per missed e-invoice up to AED 5,000 per month for failing to appoint an Accredited Service Provider. Abdelhamid & Co (MOE LC0106-01, FTA TAN 30003958) helps Dubai and Sharjah businesses stay compliant.
What Cabinet Decision 106 of 2025 Covers
The decision applies to violations of the legislation governing the e-invoicing system, in line with Federal Decree-Law No. 28 of 2022. Persons who issue or exchange electronic invoices and credit notes voluntarily are excluded from these penalties. The fines are listed in a schedule attached to the decision and take effect the day after publication.
Our VAT & Excise Tax services help businesses prepare for e-invoicing and avoid these fines.
Penalty Schedule — Key Fines
| Violation | Administrative penalty |
|---|---|
| Failure to appoint an Accredited Service Provider within the Minister's timetable | AED 5,000 per month or part-month of delay |
| Failure to issue and send an e-invoice to the recipient through the system | AED 100 per e-invoice, up to AED 5,000 per calendar month |
| Failure to issue and send an electronic credit note through the system | AED 100 per credit note, up to AED 5,000 per calendar month |
| Failure by the issuer to notify the FTA of a system disruption | AED 1,000 per day or part-day |
| Failure by the recipient to notify the FTA of a system disruption | AED 1,000 per day or part-day |
| Failure to notify the Accredited Service Provider of changes to data registered with the FTA | AED 1,000 per day or part-day |
How to Stay Compliant
1. Appoint an Accredited Service Provider within the timetable set by the Minister of Finance.
2. Issue and transmit every e-invoice and electronic credit note through the system on time.
3. Notify the FTA promptly of any system disruption that prevents compliance.
4. Keep the data registered with the FTA up to date and inform your provider of any changes.
5. Reconcile transmitted documents against your accounting records each period through compliance reviews.
Common Mistakes and Risks
The most costly mistakes are delaying ASP appointment, treating e-invoicing as optional, and ignoring system-failure notification deadlines. Because several fines accrue per document or per day, small lapses compound quickly. If a penalty has already been imposed, a reconsideration request may be available where the facts support it.
Why Choose Abdelhamid & Co
As a licensed UAE firm (MOE LC0106-01, FTA TAN 30003958) with FTA-registered tax agents and bilingual support, we help Dubai and Sharjah businesses implement e-invoicing, monitor deadlines and respond to penalties on a fixed-fee basis. See our Tax Agency service.
Frequently Asked Questions
What is the penalty for not appointing an Accredited Service Provider?
Under Cabinet Decision No. 106 of 2025, failing to appoint an Accredited Service Provider within the Minister's timetable carries an administrative penalty of AED 5,000 for each month or part-month of delay.
What is the fine for not issuing a UAE e-invoice?
Failing to issue and send an e-invoice to the recipient through the system attracts AED 100 per e-invoice, capped at AED 5,000 per calendar month. The same applies to electronic credit notes.
Are voluntary e-invoice issuers subject to these penalties?
No. Cabinet Decision No. 106 of 2025 excludes persons who issue, send or exchange electronic invoices and credit notes voluntarily from its administrative penalties.
What is the penalty for not reporting an e-invoicing system failure?
Failing to notify the Federal Tax Authority of a system disruption within the required timetable carries AED 1,000 for each day or part-day of delay, for both the issuer and the recipient.
Related Services
- VAT & Excise Compliance Review — check e-invoicing readiness and records
- Reconsideration Requests — challenge an imposed penalty
- Voluntary Disclosure — correct errors before the FTA acts
- Insights — more UAE tax guidance
Contact Us
To prepare for e-invoicing and avoid penalties, contact Abdelhamid & Co in Sharjah on 00971065610040 or use our contact page. Confirm the rules with the Federal Tax Authority and the Ministry of Finance.
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