The UAE Ministry of Finance has issued new rules to update fines for e-invoicing to support businesses and reduce duplicate penalties.
Structured invoices are issued and exchanged digitally between a supplier and a buyer and reported online to the UAE Federal Tax Authority.
The latest amendments – following a cabinet decision – aim to provide businesses with greater regulatory certainty and reduce administrative burdens by introducing more proportionate fines.
A penalty of Dh5,000 ($1,360) applies for an initial accounting violation, followed by Dh5,000 for each month during which the non-compliance continues.
Fines are subject to a maximum aggregate penalty of Dh50,000 for these breaches in any 12 consecutive months.
Administrative penalties for the issuer's or the recipient's failure to notify the authority of a system failure have also been removed.
This change aims to ensure that penalties are applied more appropriately, taking into account the respective responsibilities of the different parties within the e-invoicing system.
The changes support the UAE's wider digital transformation objectives and reinforce the country's commitment to implementing a modern tax administration framework.
A pilot phase and voluntary e-invoicing adoption launched in July, with a full introduction planned for October 1, 2027.
