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
Failing to tell your provider about changes to your registered data AED 1,000 per day, or part of a day

No more fine for an unreported system failure

The Cabinet Decision also lists AED 1,000 per day for not reporting a system failure to the Federal Tax Authority. That duty no longer exists: Ministerial Decision No. 197 of 2026 repealed the obligation to report a system failure within two business days, with effect from 1 October 2026.

Worth knowing

Businesses that adopt e-invoicing voluntarily, ahead of their phase, fall outside this penalty framework. The rules themselves still apply to them — only the penalties do not. 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.