The United Arab Emirates (UAE) Ministry of Finance publishes Cabinet Decision No. 173 of 2026 on violations and administrative penalties for the Electronic Invoicing System. The Decision repeals Cabinet Decision No. 106 of 2025. It comes into force the day after publication in the Official Gazette.
The Decision applies to Issuers and Recipients that must use the system. Businesses that participate on a voluntary basis are excluded. A person who acts as both Issuer and Recipient for the same violation receives one penalty.
The Decision sets penalties in UAE dirhams (AED) for four violations:
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Failure to implement the system or appoint an Accredited Service Provider (ASP), or, for Recipients, failure to stay compliant: AED 5,000 for the first instance, then AED 5,000 for each month or part of a month that non-compliance continues. Total fines do not exceed AED 50,000 in any 12 consecutive months.
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Failure to issue and transmit an e-invoice: AED 100 per invoice, up to AED 5,000 per calendar month.
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Failure to issue and transmit an electronic credit note: AED 100 per credit note, up to AED 5,000 per calendar month.
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Failure to notify the appointed ASP of changes to data registered with the Authority: AED 250 per day or part of a day, up to AED 5,000 per calendar month.
Issuers and Recipients confirm their ASP appointment and keep registered data current to avoid these penalties.
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