The UAE Ministry of Finance has announced a new Cabinet Resolution outlining administrative fines for businesses that fail to meet the requirements of the country’s Electronic Invoicing System. The resolution applies to entities covered under Ministerial Decision No. 243 of 2025, while companies using the system voluntarily will not face penalties until compliance becomes compulsory. The update forms part of the UAE’s ongoing efforts to strengthen its digital tax framework and improve accuracy in reporting.
Under the decision, businesses that do not implement the approved e-invoicing system or fail to appoint a certified service provider on time will face a monthly fine of Dh5,000. Companies will also be charged Dh100 for every electronic invoice not issued or transmitted as required, with a monthly cap of Dh5,000. The same penalty applies to electronic credit notes that are not submitted within the specified timeframe.
A separate fine of Dh1,000 per day will apply if businesses do not notify the Federal Tax Authority about system malfunctions or delays in updating registered information with their service provider.
Key points from the announcement indicate that the government aims to strengthen the standardization of invoicing procedures and reduce delays in digital reporting. Authorities noted that the penalty structure is designed to support a smoother transition to electronic documentation across all sectors. Industry observers expect companies to reassess their internal processes, system readiness, and reporting timelines to avoid recurring fines
The new resolution highlights the UAE’s broader shift toward automated tax systems and clearer compliance requirements. More regulatory guidance is expected as digital procedures continue to expand nationwide.
Businesses are advised to monitor official updates as the UAE progresses with upcoming phases of digital tax implementation.
