1 August 2026 · Penalties
UAE E-Invoicing Penalties
E-invoicing penalties are set by Cabinet Decision No. 106 of 2025 and apply once your phase is mandatory. They price failures such as not issuing a compliant e-invoice, not transmitting it through the accredited channel, and issuing it in the wrong format. Confirm the exact per-violation amounts against the published schedule at filing time. The practical point stands regardless: after go-live, a paper or PDF-only invoice is a non-compliant invoice, and each one is a potential penalty, so being live and tested before your date is the cheap insurance.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Cabinet Decision 106
The penalty schedule.
- Sets penalties for e-invoicing failures.
- Applies once your phase is mandatory.
- Confirm exact amounts at filing time.
- Sits alongside existing VAT penalties.
The failure types
Three common breaches.
- Not issuing a compliant e-invoice.
- Not transmitting via the accredited channel.
- Wrong or invalid format.
- Repeated failures compound the cost.
Be live and tested
Prevention is cheaper.
- Go live before your mandatory date.
- Use the pilot to catch data failures.
- A PDF-only invoice becomes non-compliant.
- Reconcile transmitted invoices regularly.
Related guides
Frequently Asked Questions
For understanding the risk.
Where are e-invoicing penalties set?
In Cabinet Decision No. 106 of 2025, which prices failures such as not issuing a compliant e-invoice, not transmitting it through the accredited channel, or using the wrong format. Confirm exact amounts against the published schedule.
When do the penalties start applying?
Once your phase is mandatory, 1 January 2027 for businesses over AED 50m and 1 July 2027 for those below. Before that, the voluntary pilot lets you test without penalty exposure.
Is a PDF invoice still allowed after go-live?
Not for transactions in scope. After your mandatory date, a paper or PDF-only invoice is a non-compliant invoice, and each one is a potential penalty.
How do I avoid penalties?
Appoint your ASP early, clean your data to PINT AE, and be live and tested before your mandatory date. Most failures come from dirty data or late integration, both avoidable in the pilot.
Do existing VAT penalties still apply?
Yes. E-invoicing penalties sit alongside the existing VAT and tax-procedures penalties, so a single failure can carry more than one consequence.
Can Exiloz reduce our penalty risk?
Yes. We get you live and tested ahead of your date and reconcile transmitted invoices so non-compliant ones do not slip through.
Stay penalty-free
Exiloz gets you live and tested before your mandatory date so non-compliant invoices never ship.