What are the penalties for not using e-invoicing?

Answered by FinTaxIQ - TI from the Federal Tax Authority’s own law · 28 September 2026. Guidance, not tax advice: rely on the official text.

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If you're required to use e-invoicing and don't set it up or send invoices/credit notes on time, penalties start at AED 5,000 per month for not implementing the system, plus AED 100 per late invoice or credit note (capped at AED 5,000/month), and AED 1,000 per day for failing to report a system failure or data changes on time.

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The detail

Under Cabinet Decision No. 106 of 2025 (Article 3 and its annexed table), specific administrative penalties apply to violations of the Electronic Invoicing System rules once a Registrant is required to be on the system. These range from AED 5,000/month (or part thereof) for failing to implement the system or appoint an Accredited Service Provider, to AED 100 per late Electronic Invoice/Credit Note (capped AED 5,000/month), and AED 1,000/day for failures to notify the Authority of a system failure or to notify the Accredited Service Provider of data changes.1 2

What the law says

Article 3 of Cabinet Decision No. 106 of 2025 imposes the administrative penalties listed in its annexed table for violations of the Electronic Invoicing System legislation.1
The annexed table sets six specific violations and penalties, including AED 5,000/month for failure to implement the system, AED 100 per late Electronic Invoice or Credit Note (max AED 5,000/month), and AED 1,000/day for failing to notify a system failure or data changes.2
Separately, Article 76 of the VAT Decree-Law (as amended) confirms that failing to issue a Tax Invoice, Tax Credit Note or alternative document within the legally prescribed period triggers an Administrative Penalty Assessment.3 Based on FTA guidance

What it depends on

These penalties apply only once a taxpayer is a Registrant subject to the mandatory Electronic Invoicing System.1 2
The decision takes effect the day after its publication in the Official Gazette.2

Check before you rely on it

Confirm whether your business falls within the mandatory Electronic Invoicing System rollout and its applicable timeline
Check whether you have appointed an Accredited Service Provider as required
Review whether invoices/credit notes are being transmitted within the prescribed timeframes

Sources (3) — read the official text

1Cabinet Decision 106/2025Article 3Cabinet Decision

Article 3 – Violations and Administrative Penalties

Read the article
Article 3 – Violations and Administrative Penalties The administrative penalties listed in the table annexed to this decision shall be imposed on the violations related to the Electronic Invoicing System.

Official PDF, p. 2Captured from the FTA website on 9 Sep 2026
2Cabinet Decision 106/2025Article 4Cabinet Decision

Article 4 – Publication and Entry into Force

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Article 4 – Publication and Entry into Force This Decision shall be published in the Official Gazette and shall come into force from the day following the date of its publication. Cabinet Decision No. 106 of 2025 – As published by the Ministry of Finance 2 Table annexed to Cabinet Decision No. 106 of 2025 on The Violations and Administrative Penalties Resulting from the Violation of the Legislation Regulating the Electronic Invoicing System No. Description of Violation Administrative Penalty Amount 1 Failure by the Issuer to implement the AED 5,000 in case of delay for each month Electronic Invoicing System including or part thereof. the failure to appoint an Accredited Service Provider within the timeline prescribed by the Minister. 2 Failure by the Issuer to issue and AED 100 for each Electronic Invoice up to transmit an Electronic Invoice to the a maximum of AED 5,000 per calendar Recipient through the Electronic month. Invoicing System within the timeline prescribed by the Minister. 3 Failure by the Issuer to issue and AED 100 for each Electronic Credit Note up transmit an Electronic Credit Note to the to a maximum of AED 5,000 per calendar Recipient through the Electronic month. Invoicing System within the timeline prescribed by the Minister. 4 Failure by the Issuer to notify the AED 1,000 for each day of delay or part Authority of a System Failure within the thereof. timeline prescribed by the Minister. 5 Failure by the Recipient to notify the AED 1,000 for each day of delay or part Authority of a System Failure within the thereof. timeline prescribed by the Minister. 6 Failure by the Issuer or the Recipient to AED 1,000 for each day of delay or part notify the appointed Accredited Service thereof. Provider of changes to the data registered with the Authority within the timeline prescribed by the Minister. Cabinet Decision No. 106 of 2025 – As published by the Ministry of Finance 3

Official PDF, pp. 2–3Captured from the FTA website on 9 Sep 2026
3Amendments to the VAT Federal Decree-Law No. 8 of 2017 – Federal De…FTA guidance

Read the article
According to the new Article 55(1)(d) of the ) من55( ) من المادة1( وفقا ً للفقرة الجديدة (د) من البند Decree-Law, the Cabinet may prescribe any other يجوز لمجلس الوزراء تحديد أية شروط،المرسوم بقانون .أخرى السترداد ضريبة المدخالت conditions for Input Tax recovery. Conditions and requirements for issuing Tax 65 شروط ومتطلبات إصدار الفاتورة الضريبية – المادة Invoices – Article 65 A new Clause 5 was added to Article 65 of the ) من المرسوم65( ) إلى المادة5( تمت إضافة البند الجديد Decree-Law, which requires Registrants subject to والذي يلزم المسجلين الخاضعين لنظام الفوترة،بقانون the Electronic Invoicing System to issue and اإللكترونية بإصدار الفواتير الضريبية وتقديمها في صيغة transmit Tax Invoices in the form of Electronic .فواتير إلكترونية وفقا ً لنظام الفوترة اإللكترونية Invoices according to the Electronic Invoicing System. Conditions and requirements for issuing the Tax شروط ومتطلبات إصدار اإلشعار الدائن الضريبي (المادة ))70( Credit Note (Article 70) A new Clause 4 was added to Article 70 of the ) من المرسوم70( ) إلى المادة4( تمت إضافة البند الجديد Decree-Law which requires Registrants subject to والذي يلزم المسجلين الخاضعين لنظام الفوترة،بقانون the Electronic Invoicing System to issue and اإللكترونية بإصدار اإلشعار الدائن الضريبي وتقديمه في transmit Tax Credit Notes in the form of Electronic .صيغة إشعار دائن إلكتروني وفقا ً لنظام الفوترة اإللكترونية Credit Notes according to the Electronic Invoicing System. ))76( تقييم الغرامات اإلدارية (المادة Administrative Penalties Assessment (Article 76) The amendments to Clauses 4 and 5 of Article 76 of ) من5() و4( توضح التعديالت التي أدخلت على البندين the Decree-Law clarify that failure to issue a Tax ) من المرسوم بقانون أن عدم إصدار فاتورة76( المادة Invoice, Tax Credit Note or any other alternative ضريبية أو إشعار دائن ضريبي أو أي مستند بديل آخر ضمن document within the legally prescribed period, will سيترتب عليه إصدار تقييم الغرامات،ً المدة المقررة قانونا result in an Administrative Penalty Assessment. .اإلدارية 5/10

Official PDF, p. 5Captured from the FTA website on 9 Sep 2026

Helpful?

What the law says:
- Article 3 of Cabinet Decision No. 106 of 2025 imposes the administrative penalties listed in its annexed table for violations of the Electronic Invoicing System legislation. [1]
- The annexed table sets six specific violations and penalties, including AED 5,000/month for failure to implement the system, AED 100 per late Electronic Invoice or Credit Note (max AED 5,000/month), and AED 1,000/day for failing to notify a system failure or data changes. [2]
- Separately, Article 76 of the VAT Decree-Law (as amended) confirms that failing to issue a Tax Invoice, Tax Credit Note or alternative document within the legally prescribed period triggers an Administrative Penalty Assessment. [3]

What it depends on:
- These penalties apply only once a taxpayer is a Registrant subject to the mandatory Electronic Invoicing System. [1, 2]
- The decision takes effect the day after its publication in the Official Gazette. [2]

Check before you rely on it:
- Confirm whether your business falls within the mandatory Electronic Invoicing System rollout and its applicable timeline
- Check whether you have appointed an Accredited Service Provider as required
- Review whether invoices/credit notes are being transmitted within the prescribed timeframes

Sources:
1. Cabinet Decision 106/2025 — Article 3
2. Cabinet Decision 106/2025 — Article 4
3. Amendments to the VAT Federal Decree-Law No. 8 of 2017 – Federal De… — p. 5

Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer

What are the penalties for not using e-invoicing?

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