UAE E-Invoicing Penalty Calculator
Estimate your monthly and annual exposure to the fines set by Cabinet Decision No. 106 of 2025 if your business is not ready in time. Nothing is sent or stored.
Your status at the deadline
Used only while “not live”: 50 untransmitted invoices (AED 100 each) already reaches the AED 5,000 monthly cap.
Estimated monthly exposure
AED 10,000
≈ AED 120,000 / year in recurring monthly penalties
- Not appointing an ASP / not implementing the systemAED 5,000 per monthAED 5,000
- Invoices not transmitted on timeAED 100 each, capped at AED 5,000/month · at capAED 5,000
Indicative estimate only, not legal or tax advice. Figures are the statutory amounts in UAE Cabinet Decision No. 106 of 2025 and apply from each phase's go-live date (1 January 2027 for Phase 1, 1 July 2027 for Phase 2). Actual penalties depend on your circumstances and the authorities' assessment. Verify the current schedule with the Ministry of Finance and Federal Tax Authority before relying on any figure.
Based on UAE Cabinet Decision No. 106 of 2025, last verified 19 August 2026. Always verify the current rules with the Ministry of Finance / Federal Tax Authority.
The penalties, in full
| Failure | Penalty |
|---|---|
| Not implementing the system / appointing an ASP by the deadline | AED 5,000 / month |
| Each invoice not issued or transmitted on time | AED 100 (cap AED 5,000/mo) |
| Each credit note not transmitted on time | AED 100 (cap AED 5,000/mo) |
| Issuer not notifying the FTA of a System Failure within 2 business days | AED 1,000 / day |
| Recipient not notifying the FTA of a System Failure within 2 business days | AED 1,000 / day |
| Not telling your ASP that data registered with the FTA changed, within 5 business days | AED 1,000 / day |
All six violations in the table annexed to UAE Cabinet Decision No. 106 of 2025. Penalties for invoices and credit notes are capped separately, so the two caps can apply in the same month. The notification deadlines come from MoF Ministerial Decision No. 243 of 2025 (Articles 12 and 5(3)); a business day excludes weekends and official Federal holidays.
Adopting early costs you nothing in penalties. Administrative penalties apply only from the date you are required to implement. Adopting early, on a voluntary basis, does not bring them forward. You can implement voluntarily from 1 July 2026, and the penalty regime still starts only on your own mandatory date.Source: UAE Cabinet Decision No. 106 of 2025 Art. 2(2); MoF Ministerial Decision No. 243 of 2025 Art. 4(3).
Avoid the exposure
The simplest way to bring your modelled exposure to zero is to confirm your phase and deadline, then appoint a MoF Accredited provider with enough lead time to integrate and test before go-live.
Frequently asked questions
What are the penalties for UAE e-invoicing non-compliance?
Under UAE Cabinet Decision No. 106 of 2025, the main penalties are AED 5,000 per month for failing to implement the e-invoicing system or appoint an Accredited Service Provider by the deadline; AED 100 for each electronic invoice not issued or transmitted on time (capped at AED 5,000 per month); AED 100 for each electronic credit note not transmitted on time (capped at AED 5,000 per month); and AED 1,000 per day for failing to notify the Federal Tax Authority of a system malfunction.
When do UAE e-invoicing penalties start?
Penalties apply from each phase's mandatory go-live date: 1 January 2027 for Phase 1 businesses (annual revenue of AED 50 million or more) and 1 July 2027 for Phase 2 businesses. Phase 1 businesses must appoint an ASP by 30 October 2026.
How much is the fine for not appointing an ASP?
AED 5,000 per month for failing to implement the e-invoicing system or appoint an Accredited Service Provider within the required deadline, under UAE Cabinet Decision No. 106 of 2025.