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Home / E-invoicing / Penalties
What it costs to miss the deadline or to send invoices outside the system, from Cabinet Decision No. 173 of 2026.
The penalties
| Violation | Penalty |
|---|---|
| Not implementing the e-invoicing system, including not appointing an accredited service provider | AED 5,000 for the first instance, then AED 5,000 for each month or part of a month it continues, up to AED 50,000 in any twelve consecutive months |
| A recipient that implemented the system but stops meeting its obligations | Same as above |
| Not issuing and sending an e-invoice through the system | AED 100 per e-invoice, up to AED 5,000 a calendar month |
| Not issuing and sending an e-credit note through the system | AED 100 per e-credit note, up to AED 5,000 a calendar month |
| Not telling your provider of changes to the data registered with the FTA | AED 250 for each day of delay or part of a day, up to AED 5,000 a calendar month |
Table annexed to Cabinet Decision No. 173 of 2026. Where one act breaks more than one rule, only one penalty applies for that act.
In plain words
Miss your appointment date without a provider and the first penalty is AED 5,000. Every month without a provider adds AED 5,000, until the total reaches AED 50,000 in a twelve-month window.
Once you are live, each invoice that goes out as a PDF instead of through the system costs AED 100, capped at AED 5,000 a month. The same for credit notes.
Penalties do not apply to e-invoices sent voluntarily before your mandatory date. Starting early carries no penalty risk.
Avoiding them
Questions
AED 5,000 for not implementing the e-invoicing system, including not appointing an accredited service provider. Then AED 5,000 for each month or part of a month the failure continues, up to AED 50,000 in any twelve months.
AED 100 for each e-invoice or e-credit note not issued and sent through the system, up to AED 5,000 a month.
No. Penalties do not apply to e-invoices issued voluntarily before your mandatory date.
Cabinet Decision No. 173 of 2026, which replaced Cabinet Decision No. 106 of 2025. It takes effect the day after publication in the Official Gazette.
Yes. The ordinary VAT penalties for a missing or wrong tax invoice under Cabinet Decision No. 40 of 2017 still apply where a tax invoice obligation is not met.
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