The United Arab Emirates has revised penalties for specified e-invoicing implementation failures, limiting charges as businesses prepare for the mandatory system under a new Cabinet decision replacing the 2025 rules.
The Ministry of Finance said the decision replaces Cabinet Decision No. 106 of 2025. For covered implementation violations by issuers or recipients, the first charge is AED 5,000. Each additional month, including a partial month, of continued noncompliance adds AED 5,000, up to AED 50,000 within any 12 consecutive months.
The decision removes the fine for failing to notify the Federal Tax Authority (FTA) of a system failure. It also limits a violation to one penalty when the same person acts as issuer, recipient or both.
The ministry said it revised the rules after stakeholder feedback, with the changes intended to clarify obligations and reduce administrative burdens.
Ministerial Decision No. 66 of 2026 set an Oct. 30 provider-selection deadline for companies with annual revenue of AED 50 million or more. The FTA says that group must implement the system by Jan. 1, 2027. Businesses below the revenue threshold have until March 31, 2027, to select a provider and July 1, 2027, to implement the system. The FTA also requires covered businesses to complete EmaraTax procedures and arrange a provider agreement and technical connection.
Government entities are scheduled to begin compliance in October 2027, Gulf News reported.
