The news
On 30 October 2026, the UAE Ministry of Finance announced a new Cabinet Decision on administrative penalties for the national e-invoicing system. It replaces Cabinet Decision No. 106 of 2025 and, the ministry says, follows feedback from stakeholders and aims to make fines more proportionate. The ministry has not yet given the new decision's number or the date it takes effect.
If a business that issues or receives invoices does not meet its e-invoicing implementation obligations, the fine is AED 5,000 for the first breach and AED 5,000 for each further month or part of a month it continues, up to AED 50,000 in any 12 consecutive months. Under Decision 106, a late start on the system or a late appointment of a provider cost AED 5,000 a month with no ceiling. The penalty for not telling the Federal Tax Authority about a system failure, AED 1,000 a day under the old decision, is removed, in line with Ministerial Decision 197, which dropped that duty in October. And when one company is the issuer, the recipient or both in the same breach, it pays one penalty, not two.
The ministry says other penalties were revised too, but has not listed which ones or by how much, so the old per-invoice fines (AED 100 for each e-invoice or credit note not issued or sent on time, up to AED 5,000 a month) may have changed. The announcement does not change the rollout dates. Companies with revenue of AED 50 million or more had to appoint an accredited provider by 30 October 2026 and must go live on 1 January 2027. Smaller businesses appoint one by 31 March 2027 and go live on 1 July 2027, and government entities follow on 1 October 2027.
What it means for you
- If your UAE company misses an implementation duty, the fine for that breach now stops at AED 50,000 in any 12 months, though it reaches that ceiling in about ten months.
- A fine does not replace the work: from 1 January 2027, large companies must still issue their invoices through the system.
- Not reporting a system failure to the tax authority no longer carries a fine, because the duty itself was removed in October.
- Smaller UAE businesses come under the same fines once their own dates arrive in 2027.
What to do now
- If you were due to appoint an accredited provider by 30 October and have not, do it now rather than wait for the full text of the decision.
- Test that your accounting or ERP system sends each invoice and credit note to your provider before 1 January 2027.
- If your revenue is below AED 50 million, put 31 March 2027 in your calendar as the last day to choose a provider.
- Ask your tax adviser to check the full penalty table once the ministry publishes the decision.
How Didset can help
If your invoices come from a system we built, or one you already use, we can connect it to your provider and test it before your start date.
Talk to us about it
