UAE Publishes Monthly Fine for Businesses that Miss e-Invoicing Deadline
- The UAE Ministry of Finance has released a cabinet resolution outlining stiff fines for businesses that fail to comply with e-invoicing rules
- Large businesses with revenue of AED 50 million or more face a hard January 2027 go-live date, with a key preparatory deadline already shifted
- Penalties cover everything from failing to register with an approved service provider to not reporting system malfunctions on time
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The United Arab Emirates has announced financial penalties for businesses that fail to meet the requirements of its incoming electronic invoicing system, with fines reaching as high as AED 5,000 (approximately ₦2,175,000) per month for non-compliance.
The UAE Ministry of Finance published Cabinet Resolution No. (106) of 2025, which sets out administrative fines tied to the country's Electronic Invoicing System.
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The resolution forms part of a broader government push to advance digital transformation and strengthen tax compliance in line with international standards.
UAE: Who must comply and when?
Under the framework established by Ministerial Decision No. (243) of 2025, e-invoicing will become mandatory in phases. Businesses generating annual revenue of AED 50 million (approximately ₦21.75 billion) or more must go live on January 1, 2027.
Those companies are required to appoint an Accredited Service Provider (ASP) by 30 October 2026, a deadline the Ministry extended from an earlier cut-off of 31 July 2026, though the go-live date itself was not adjusted.
Smaller businesses below the revenue threshold have until 31 March 2027 to secure an ASP and must begin operating the system by July 1, 2027. Government entities are scheduled to follow on October 1, 2027.
Businesses that adopt the system voluntarily before their mandatory compliance date will not be subject to any fines during that voluntary period.
UAE: Breakdown of the fine structure
The resolution specifies fines across several categories of violation:
- AED 5,000 (approximately ₦2,175,000) per month for failing to implement the Electronic Invoicing System or failing to appoint an accredited service provider within the deadline set by Ministerial Decision No. (244) of 2025.
- AED 100 (approximately ₦43,500) per electronic invoice not issued or sent within the required timeframe, capped at a total of AED 5,000 (approximately ₦2,175,000) per month.
- AED 100 (approximately ₦43,500) per electronic credit note not issued or sent on time, also capped at AED 5,000 (approximately ₦2,175,000) per month.
- AED 1,000 (approximately ₦435,000) for each day of delay, or part thereof, for failing to notify the Federal Tax Authority of any system malfunction within the specified timeframe.
- AED 1,000 (approximately ₦435,000) for each day of delay, or part thereof, for failing to inform the appointed accredited service provider of any changes to data registered with the Authority.
Legit.ng reported that the UAE had released the daily fines for foreigners who overstay their visas.
In a related story, Legit.ng reported that the UAE had announced the fines for people caught begging in the country.
UAE's penalty for hiring workers without work permits
Meanwhile, Legit.ng previously reported that the UAE had shared a harsh penalty for companies that hire foreigners who do not have work permits.
Under the law, any company found to have hired an expatriate who lacks an official work permit faces a fine of AED 50,000 (N18,011,980).
The penalty does not stop there; repeat offenders face additional sanctions beyond the initial fine.
Source: Legit.ng
