Abu dhabi: The Ministry of Finance has announced the issuance of Cabinet Resolution No. (106) of 2025, which outlines violations and administrative fines for non-compliance with legislation regulating the Electronic Invoicing System. This move is part of the UAE's strategy to support its digital transformation journey and enhance tax compliance in line with international standards.
According to Emirates News Agency, the resolution targets all entities required to implement the Electronic Invoicing System as per Ministerial Decision No. (243) of 2025. Entities voluntarily using the system are exempt from the resolution until they are mandatorily required to comply. The resolution details specific fines for violations related to the implementation of the Electronic Invoicing System for those mandated to apply it.
The fines include AED5,000 per month for failing to implement the system or appoint an approved service provider within the timeframe specified in Ministerial Decision No. (244) of 2025. Additionally, there is a fine of AED100 per electronic invoice or credit note not issued or sent within the specified timeframe, with a cap of AED5,000 per month. Further penalties include AED1,000 for each day of delay in notifying the Federal Tax Authority of system malfunctions or modifications to registered data with the Authority.
This resolution marks a significant step in the UAE's digital transformation efforts and underscores the government's commitment to adopting global best practices for a seamless transition to a digital economy.