UAE's Ministry of Finance Publishes Penalties for E-Invoicing Non-Compliance

On November 24, 2025, the UAE Ministry of Finance took another decisive step toward strengthening the country’s digital economy. With the publication of Cabinet Decision No. 106 of 2025, the government has formally introduced a detailed list of administrative penalties for companies that fail to comply with the upcoming mandatory E-Invoicing System.

This announcement confirms one thing: once the mandate comes into force, the UAE is prepared to enforce it.

A Soft Start? What Businesses Can Expect

Although the penalties are now officially defined, the government’s initial approach may not be purely punitive.

Early indications suggest that the first months after e-invoicing becomes mandatory could function as an informal transition phase. During this period, businesses that encounter technical or operational issues may be met primarily with support and corrective guidance instead of immediate fines.

However, this should not be mistaken for a guarantee of leniency. The penalty framework is already legally binding, and authorities can choose to apply it at any time once the system goes live. Companies should treat the transitional window as a brief opportunity to finalize their systems rather than a buffer they can rely on long-term.

Key Penalties Introduced Under the New Regulation

The decision outlines several types of violations, along with corresponding financial penalties. These apply not only to companies that fail to implement the system on time, but also to those that do not maintain proper operational continuity.

Below is a simplified overview of the main penalties:

The clarity of the penalty table leaves no room for uncertainty—non-compliance will carry predictable and potentially escalating financial consequences.

What Should Companies Do Now?

With the penalty structure officially announced, organizations can now evaluate the financial risk of delayed implementation and plan accordingly.

This is the ideal moment to:

• Review internal readiness and integration status

• Validate timelines for ERP connection and system testing

• Finalize cooperation with an Accredited Service Provider

• Ensure business processes are aligned with UAE e-invoicing requirements

Businesses that act proactively will be in the best position to avoid disruption once authorities begin enforcing the rules more strictly.

How Infinite Can Support Your Compliance Journey

As a certified Peppol provider with deep experience in large-scale e-invoicing projects, Infinite is equipped to help businesses transition smoothly into the UAE’s new digital framework.

Our secure, automated, and fully compliant e-invoicing solutions ensure you stay ahead of regulatory deadlines and avoid unnecessary penalties.

If you’d like an assessment of your current readiness or implementation plan, our team is here to help.