The UAE Ministry of Finance has introduced a revised penalty framework for companies that do not meet the requirements of the Electronic Invoicing System. The new resolution applies to all entities listed under Ministerial Decision No. 243 of 2025, while voluntary users will only be subject to penalties once the system becomes compulsory. Officials said the update supports the country’s plan to strengthen digital tax procedures and ensure consistent reporting across businesses.
- Firms that fail to activate the approved e-invoicing system or hire a certified provider on time will face a Dh5,000 monthly fine.
• A charge of Dh100 per electronic invoice will apply when invoices are not issued or transmitted within the required timeframe, with a ceiling of Dh5,000 per month.
• The same Dh100-per-document penalty applies to delayed electronic credit notes, also capped at Dh5,000 monthly.
• Companies that do not notify the Federal Tax Authority of system issues will incur Dh1,000 per day.
• Any delay in updating registered details with the service provider will also result in Dh1,000 per day.
• Authorities said the framework is designed to guide companies toward full digital compliance and reduce reporting gaps.
The revised penalties mark another step in the UAE’s effort to create a structured and dependable digital tax environment. Businesses are expected to reassess their invoicing systems and ensure timely reporting to avoid accumulating fines. Further guidance is anticipated as the country continues to modernize its digital economy and expand electronic procedures.
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