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UAE caps e-invoicing non-compliance fines at Dh50,000 a year and drops daily failure-reporting penalty

The UAE has capped total fines for failing to implement e-invoicing at Dh50,000 in any 12 consecutive months and scrapped the daily penalty for not reporting system failures, Gulf News reported. The rollout timetable, starting on 1 January 2027, is unchanged.

Illustration of blank invoice sheets beside a data terminal beneath a horizontal bar in a courtyard with palm fronds.
Illustration. Not a photograph of the event.

The UAE Ministry of Finance announced changes to the e-invoicing penalty regime on Friday 30 October, Gulf News reported. The monthly fine for not implementing the system stays in place, but the total is now limited to Dh50,000 over any 12 consecutive months. The daily fine for not reporting an e-invoicing system failure has been removed.

According to the newspaper, the revised decision replaces Cabinet Decision No. 106 of 2025. It also ends double penalties: a person can face a single administrative penalty for a given violation, whether the business issues invoices, receives them or both.

The implementation timetable has not changed. Businesses in the first phase must start mandatory e-invoicing on 1 January 2027, and the second phase begins on 1 July 2027, Gulf News said.

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