MoF updates eInvoicing penalties—AED5,000 per violation, capped at AED50,000 annually

The Ministry of Finance has announced a new Cabinet Decision revising administrative penalties for the UAE eInvoicing system, replacing Cabinet Decision No. 106 of 2025. The amendments follow stakeholder feedback and aim to create a clearer, more proportionate compliance framework.

Under the revised penalty structure, an initial violation incurs AED5,000, followed by AED5,000 for each month or part thereof of continued non-compliance, subject to a maximum aggregate penalty of AED50,000 in any twelve consecutive months. The new Decision removes the previous penalty for failure to notify the Authority of a system failure, reflecting a more balanced approach to different parties' responsibilities.

Where the same person acts as both Issuer and Recipient in relation to the same violation, only one administrative penalty will be imposed, preventing duplication. The Ministry states the revisions support clarity, reduce administrative burdens, and align with international best practices as businesses prepare for mandatory eInvoicing implementation.