The UAE set out the fines for e-invoicing in Cabinet Resolution No. 106 of 2025, announced by the Ministry of Finance in December 2025. The fines are administrative, which means the Federal Tax Authority (FTA) can impose them without going to court. Here is each one, with what triggers it.
The fines
| Violation | Fine |
|---|---|
| Not implementing the e-invoicing system, or not appointing an Accredited Service Provider (ASP), by your deadline | AED 5,000 for each month or part of a month |
| Not issuing or sending an e-invoice within the required time | AED 100 per invoice, up to AED 5,000 a month |
| Not issuing or sending an electronic credit note within the required time | AED 100 per credit note, up to AED 5,000 a month |
| Not telling the FTA about a system failure on time | AED 1,000 for each day or part of a day |
| Not telling your ASP about changes to your registered data on time | AED 1,000 for each day or part of a day |
Worked examples
A business that misses its go-live date. A company in the second group (go-live 1 July 2027) has not appointed an ASP or implemented the system by then. If it takes until mid-October 2027 to comply, that is four months or part-months, and the fine is 4 × AED 5,000 = AED 20,000.
Late invoices. A company issues 30 invoices late in one month. At AED 100 each that would be AED 3,000, which is under the cap, so the fine is AED 3,000. If it issued 80 late invoices, the AED 8,000 total would be capped at AED 5,000 for that month.
A system outage. A company’s invoicing system fails and it does not tell the FTA within the required time. It notifies the FTA three days late. The fine is 3 × AED 1,000 = AED 3,000.
Voluntary adopters
Businesses that join the system voluntarily before their mandatory date are not fined under these rules until their mandatory date arrives. That makes early adoption a low-risk way to test. See should you join the pilot early?
These fines sit alongside VAT penalties
The e-invoicing fines do not replace the VAT penalty rules. An invoice that is wrong for VAT purposes can still attract VAT penalties, and late VAT returns or payments are fined under the VAT rules. See UAE VAT penalties in 2026.
How to avoid them
- Know your dates. Use the e-invoicing deadline checker.
- Appoint an ASP early and test before your go-live date.
- Set up an outage procedure. Decide who notifies the FTA and the ASP if your system fails, and how.
- Keep registration data current. When your address, trade licence or TRN details change, update your ASP straight away.
Common questions
Can these fines be waived?
The FTA has processes for reconsidering penalties in some cases. Do not rely on a waiver; plan to comply on time.
Is the AED 5,000 a month charged per invoice?
No. The AED 5,000 monthly fine is for not implementing the system or not appointing an ASP. The per-invoice fine is separate and capped at AED 5,000 a month.
How the fines can add up
Fines in different categories are separate, so one weak process can trigger several at once.
Example. A business misses its go-live date by two months, issues 120 invoices late in the first month after it finally goes live, and notifies the FTA of an outage two days late.
| Fine | Calculation | Amount |
|---|---|---|
| Not implementing on time | 2 months × AED 5,000 | AED 10,000 |
| Late invoices | 120 × AED 100, capped at AED 5,000 | AED 5,000 |
| Late outage notice | 2 days × AED 1,000 | AED 2,000 |
| Total | AED 17,000 |
That is before any VAT penalties on the same invoices.
Who is responsible inside the business
Write down who does what before go-live: who watches for rejected invoices each day, who contacts the provider when the connection fails, and who notifies the FTA. In small businesses this is often one person, which is fine, as long as someone covers when they are away.
