The framework

Cabinet Decision No. 106 of 2025 sets the violations and administrative penalties for the electronic invoicing system. The Federal Tax Authority applies them through its electronic systems, which means they are calculated automatically rather than assessed case by case.

The amounts

Violation Penalty
Failing to appoint an accredited provider, or to go live, within the required period AED 5,000 per month, for every month it is late
An electronic invoice not issued or transmitted on time AED 100 per invoice, capped at AED 5,000 per calendar month
An electronic credit note not issued or transmitted on time AED 100 per note, with its own separate monthly cap
A recipient failing to notify the authority of a system failure AED 1,000 per day, or part of a day
Failing to tell your provider about changes to your registered data AED 1,000 per day, or part of a day

Worth knowing

Businesses that adopt e-invoicing voluntarily, ahead of their phase, fall outside this penalty framework. That makes the pilot period genuinely low-risk: you can get the process working before it becomes chargeable.

The monthly penalty for a late appointment runs per month, so the cost of postponing is linear and predictable — and entirely avoidable by appointing a provider before your deadline.

Official sources

Penalty amounts can change by decision — check them against the official texts.