UAE tax alert: Businesses face fines up to Dh5,000 for failing to comply with e-invoicing rules
A move to strengthen digital systems and tax compliance in the UAE
Abu Dhabi: The UAE Ministry of Finance has announced a Cabinet Resolution imposing administrative fines on businesses that do not comply with the country’s Electronic Invoicing System (EIS), as part of the nation’s ongoing efforts to advance digital transformation and strengthen tax compliance.
Who must comply?
The resolution applies to all entities required to implement the EIS under Ministerial Decision No. (243) of 2025. Businesses using the system voluntarily are exempt from fines until compliance becomes mandatory.
What are the fines?
The Cabinet Resolution outlines penalties for specific violations:
Dh5,000 per month for failing to implement the system or appoint an approved service provider on time.
Dh100 per electronic invoice not issued or sent within the required timeframe, capped at Dh5,000 per month.
Dh100 per electronic credit note not issued or sent on time, capped at Dh5,000 per month.
Dh1,000 per day for failing to notify the Federal Tax Authority of system malfunctions.
Dh1,000 per day for delays in informing the approved service provider about changes to registered data.
A step forward for UAE’s digital economy
Officials said the resolution reflects the UAE government’s commitment to international best practices and its ongoing efforts to build a fully integrated digital economy.
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