Businesses are encouraged to review their processes and ensure readiness for mandatory E-Invoicing rollout
The UAE Ministry of Finance has issued a new Cabinet Resolution introducing administrative penalties for businesses that fail to comply with the Electronic Invoicing System (EIS). This announcement forms part of the UAE’s commitment to strengthening tax governance and advancing its digital transformation agenda.
Who Is Required to Comply?
The Resolution applies to all businesses obligated to adopt the EIS under Ministerial Decision No. (243) of 2025. Companies that have opted to use the system voluntarily will not face penalties until the requirements officially become mandatory.
Summary of Applicable Penalties:
- AED 5,000 per month for failing to implement the EIS or appoint an approved service provider within the prescribed timeframe.
- AED 100 per electronic invoice not issued or transmitted on time (capped at AED 5,000 per month).
- AED 100 per electronic credit note not issued or transmitted on time (capped at AED 5,000 per month).
- AED 1,000 per day for not informing the Federal Tax Authority (FTA) of system malfunctions.
- AED 1,000 per day for delays in notifying the approved service provider of changes to registered data.
A Major Step Toward a Fully Digital Economy
Strengthening the UAE’s Digital Tax Environment
The introduction of these penalties reinforces the UAE’s drive toward global best practices and its continued progress in establishing an integrated, technology-driven economic framework.
Should you require assistance in implementing E-Invoicing or ensuring compliance, please feel free to contact us.
