UAE Ministry Of Finance Announces New Cabinet Resolution On Administrative Fines For Electronic Invoicing Compliance

The Ministry of Finance has issued Cabinet Resolution No. (106) of 2025, focusing on violations and fines linked to non-compliance with the Electronic Invoicing System regulations. This move is part of the UAE's strategy to enhance digital transformation and ensure tax compliance aligns with global standards. The resolution targets entities mandated to use the Electronic Invoicing System, as outlined in Ministerial Decision No. (243) of 2025.

Entities voluntarily using the system are exempt from this resolution until they are required to comply mandatorily. The resolution outlines specific fines for non-compliance with the Electronic Invoicing System requirements. These penalties aim to ensure adherence to the system by those obligated to implement it.

Fines include a monthly charge of AED5,000 for not implementing the system or failing to appoint an approved service provider within the timeframe set by Ministerial Decision No. (244) of 2025. Additionally, there is a penalty of AED100 per electronic invoice not issued or sent on time, capped at AED5,000 monthly.

Similarly, a fine of AED100 applies per electronic credit note not issued or sent within the specified period, also limited to AED5,000 each month. These measures are designed to encourage timely compliance with invoicing requirements.

A daily fine of AED1,000 is imposed for delays in notifying the Federal Tax Authority about any malfunctions in the Electronic Invoicing System within the designated timeframe. This penalty underscores the importance of maintaining system functionality and prompt communication with authorities.

Moreover, a similar daily fine applies for failing to inform the appointed service provider about any changes in data registered with the Authority within the specified period. These fines highlight the necessity for accurate and timely updates in system data management.

This resolution marks a significant advancement in UAE's digital transformation efforts and demonstrates a strong commitment by the government to adopt international best practices in moving towards a fully integrated digital economy.

With inputs from WAM