The official penalty table
The penalty framework was issued under Cabinet Decision No. 106 of 2025. Three violations matter to every business:
| Violation | Penalty | How it repeats |
|---|---|---|
| Failure to implement the e-invoicing system, including failure to appoint an accredited service provider within the timeline | AED 5,000 | For each month of delay, or part thereof |
| Failure to issue an e-invoice or transmit it to the recipient through the system within the timeline | AED 100 per invoice capped at AED 5,000 per month |
Monthly |
| Failure to notify the authority or the provider of system failures or changes to registration details | AED 1,000 | For each day of delay |
Estimate the cost of delay for your business
The calculator below is an awareness estimate only, meant to convey the scale these figures reach once they accumulate:
The comparison that settles the decision
Put the two numbers side by side:
- The cost of compliance: an annual subscription with an accredited provider — prices vary considerably between providers and by your size.
- The cost of non-compliance: AED 5,000 a month accumulating with no time limit, i.e. AED 60,000 a year on a single violation alone — before we add the penalty for untransmitted invoices.
In the overwhelming majority of cases, an annual subscription with an accredited provider costs less than two or three months of penalties. And that is the heart of it: delay is not a saving, it is a deferred and larger payment. Worse, the penalty leaves your pocket without buying you anything, whereas the subscription buys you a system that works.
Compare providers before you pay
44 providers accredited by the Ministry of Finance, with prices that vary widely. Pick three and build a comparison sheet with the right questions before you sign.
Open the ASP directoryFrequently asked questions about penalties
Are penalties applied automatically?
The framework is defined in regulation, and enforcement rests with the competent authorities. The safe assumption for any business is that non-compliance is visible and recorded — particularly since invoice data reaches the Federal Tax Authority directly through providers.
What if I contracted a provider but the technical integration ran late?
Appointing the provider within the timeline addresses the first violation, but you still have to issue and transmit for real once compliance begins — and that is where the untransmitted-invoice penalty applies. This is exactly why you should leave enough time for testing before go-live.
Do penalties apply to small businesses too?
Yes, as long as the business is within scope. The phase and the deadline differ by revenue, but the violation itself does not distinguish between large and small. See the small business guide.
If my supplier doesn't send e-invoices, am I penalised?
Responsibility for issuing and transmitting sits with the issuer. However, an incorrect invoice can create problems for your input tax recovery and your accounting records — a practical reason to track your suppliers' readiness as well.