The Ministry of Finance has announced the issuance of Cabinet Resolution No. 106 for the year 2025, which addresses administrative violations and penalties resulting from breaches of the regulations governing the electronic invoicing system. This initiative is part of the UAE’s efforts to promote digital transformation and ensure tax compliance in line with global best practices.
The resolution applies to all entities and organizations required to implement the electronic invoicing system as per the stipulations of Ministerial Resolution No. 243 for the year 2025. Individuals who opt to adopt the electronic invoicing system voluntarily are exempt from penalties until they are mandatorily subjected to the system.
To facilitate effective compliance, the resolution specifies the administrative fines imposed on violations related to the implementation of the electronic invoicing system by obligated parties. These fines include:
– A monthly penalty of 5,000 AED for failing to implement the electronic invoicing system or for not appointing an approved service provider within the timeframe set in Ministerial Resolution No. 244 for 2025.
– A fine of 100 AED for each electronic invoice that is not issued or sent within the specified timeframe, with a maximum total administrative penalty of 5,000 AED per month.
– A penalty of 100 AED for each electronic credit notice that is not issued or sent within the designated period, also capped at 5,000 AED per month.
– A fine of 1,000 AED for each day, or part of a day, for failing to notify the Federal Tax Authority of any failure in the electronic invoicing system within the set schedule.
– A fine of 1,000 AED for each day, or part of a day, for not informing the appointed approved service provider of any changes to the data registered with the authority within the specified timeframe.
This resolution marks a significant step in the digital transformation journey of the UAE and demonstrates the government’s commitment to adopting international best practices in transitioning to a fully integrated digital economy.