Dubai, UAE – The UAE Ministry of Finance has amended administrative penalties under the country’s e-invoicing system, aiming to cut duplicate fines and make penalties more proportionate for businesses.
What changed
- AED 5,000 fine for an initial accounting violation
- A further AED 5,000 for each month the non-compliance continues
- Total penalties for these breaches capped at AED 50,000 in any 12 consecutive months
- Penalties for failing to notify the authority of a system failure removed for both invoice issuers and recipients
Who is affected
The rules apply to businesses that issue and exchange structured electronic invoices between suppliers and buyers, which are reported to the Federal Tax Authority.
E-invoicing timeline
- July 2026: Pilot phase and voluntary adoption began
- 1 October 2027: Planned full introduction
The ministry said the update gives businesses greater regulatory certainty as they prepare for mandatory e-invoicing.
Source: The National
