UAE E-Invoicing Penalty Calculator
Last reviewed: By Kenobiz Solutions editorial team
Estimate the administrative penalties your business could face under Cabinet Decision No. 106 of 2025 (also called Cabinet Resolution No. 106 of 2025). Enter your situation once your mandatory phase has started, and the calculator applies the official amounts and monthly caps.
Estimated total
AED 0
No penalty with these inputs.
Estimate for information only, based on the published penalty table. The FTA decides the actual penalties; other VAT or tax-procedure penalties may also apply. Not tax advice.
How does the calculator work?
The calculator multiplies each input by the amount set in Cabinet Decision No. 106 of 2025 and applies the caps: AED 5,000 per month (or part of a month) without a system or ASP, AED 100 per late e-invoice or credit note up to AED 5,000 per calendar month, and AED 1,000 per day of late notification.
The decision lists six violations. The table below is generated from the same data as the calculator:
| Breach | Fine | Cap |
|---|---|---|
| Failing to implement the e-invoicing system, including failing to appoint an accredited ASP on time | AED 5,000 per month | No monthly cap stated |
| Failing to issue and transmit an e-invoice on time | AED 100 per e-invoice | max AED 5,000 per month |
| Failing to issue and transmit an electronic credit note on time | AED 100 per credit note | max AED 5,000 per month |
| Issuer failing to notify the FTA of a system failure on time (within 2 business days) | AED 1,000 per day of delay | No monthly cap stated |
| Recipient failing to notify the FTA of a system failure on time (within 2 business days) | AED 1,000 per day of delay | No monthly cap stated |
| Issuer or recipient failing to notify its ASP of a change to the data registered with the FTA (within 5 business days of the FTA's confirmation) | AED 1,000 per day of delay | No monthly cap stated |
Cabinet Decision No. 106 of 2025 (violations and administrative penalties, e-invoicing) · Checked 10 October 2026
Three rules shape the result:
- Monthly caps. Late e-invoices and late electronic credit notes are each capped at AED 5,000 per calendar month. The calculator applies the cap to each month separately: enter the number of late documents per month and the number of months.
- "Or part thereof". The AED 5,000 penalty applies "for each month or part thereof", and the daily penalties per day of delay or part of a day. Two months and one day count as three months.
- Notification deadlines. A system failure must be reported to the Federal Tax Authority (FTA) within 2 business days, by the issuer and by the recipient. A change to your FTA-registered data must be notified to your ASP within 5 business days of the FTA confirming it. The daily penalty counts the days of delay after those deadlines.
For the background on each violation, read our guide to UAE e-invoicing penalties and fines; for the wider picture, see our complete UAE e-invoicing guide.
Worked example
A trading company with revenue below AED 50 million had to appoint an accredited service provider (ASP) by 31 March 2027 and go live on 1 July 2027. It appoints its ASP on time but goes live 2 months and 10 days late, then has teething problems:
| Situation | Calculator input | Penalty |
|---|---|---|
| Implemented 2 months and 10 days late | 3 months (the 10 days count as a month) | 3 × AED 5,000 = AED 15,000 |
| 60 late e-invoices per month for 2 months | 60 late e-invoices, 2 months | AED 6,000 capped at AED 5,000, × 2 = AED 10,000 |
| 12 late credit notes in one month | 12 late credit notes, 1 month | 12 × AED 100 = AED 1,200 |
| System failure reported to the FTA 3 days after the deadline | 3 days (issuer) | 3 × AED 1,000 = AED 3,000 |
| Estimated total | AED 29,200 |
Without the monthly cap, the late e-invoices alone would have cost AED 12,000. The largest item is the delay in implementing the system, which has no cap: each extra month adds AED 5,000. Check your own dates in our UAE e-invoicing deadlines guide.
What are the limits of this estimate?
- The FTA decides. The calculator applies the published table to the figures you enter. The actual penalties are decided by the FTA based on the facts of your case.
- Only from your mandatory date. Penalties do not apply to voluntary adopters or pilot participants before their phase. They apply once your business is required to implement: for most SMEs, after 31 March 2027 for the ASP appointment and 1 July 2027 for going live.
- Other penalties may apply. General VAT and tax procedure penalties can still apply to tax invoice failures. They are not included here.
- Entry into force. The decision applies from the day after its publication in the Official Gazette. We have not been able to confirm the publication date, so we do not state one.
- Not tax advice. For a specific case, check with an FTA-registered tax agent.
How can you avoid these penalties?
Most of the exposure comes from starting late. Appoint an ASP before your deadline using the list of accredited service providers, check that your e-invoicing software can produce PINT AE invoices, and follow the steps in our guide to implementing e-invoicing in the UAE. To see your own deadlines and priority actions, take the two-minute e-invoicing readiness check, or browse our other free compliance tools.
Frequently asked questions
Do penalties apply during the pilot or to voluntary adopters?
No. Cabinet Decision No. 106 of 2025 does not apply to businesses that issue or report e-invoices voluntarily, and the MoF guidelines say penalties only apply from the date a business is required to implement e-invoicing.
Is the AED 5,000 monthly penalty capped?
The published table sets no monthly cap for this penalty. It is AED 5,000 for each month or part of a month of delay in implementing the system, including appointing an accredited ASP on time. The caps apply to late e-invoices and late credit notes.
What does 'or part thereof' mean?
A part of a month counts as a full month, and a part of a day as a full day. Being one month and three days late in implementing the system therefore counts as two months, or AED 10,000.
Is there a penalty for each late e-invoice even above 50 in a month?
No. Late e-invoices cost AED 100 each, up to AED 5,000 per calendar month. From the 51st late e-invoice in the same month, the amount no longer increases. The same rule applies to late electronic credit notes.
Can other penalties apply on top of these?
Yes. The MoF guidelines note that the general VAT and tax procedure penalties can still apply, for example when a tax invoice is not issued correctly. The calculator only covers the six e-invoicing violations.
Are you ready for UAE e-invoicing?
Answer 9 questions (2 minutes): your phase, your personal deadlines, your 3 priority actions and a software recommendation.
Related guides
- Readiness check9 questions, 2 minutes: your phase, your deadlines, a score out of 100 and your 3 priority actions.
- Software finderSix questions: your e-invoicing deadlines and three software options for your size, activity and current tool.
- ASP listThe official list of accredited e-invoicing service providers, searchable, with what changed under Ministerial Decision No. 168 of 2026 and how to choose one.
Sources
Official texts and references used for this page:
- Cabinet Decision No. 106 of 2025 — e-invoicing violations and penalties (MoF) — 2025
- Ministerial Decision No. 243 of 2025 — the e-invoicing system (MoF) — 2025
- Ministerial Decision No. 244 of 2025 — implementation phases (MoF) — 2025
- Ministerial Decision No. 66 of 2026 — amends No. 244 of 2025 (MoF) — 2026
- UAE Electronic Invoicing Guidelines v1.1 (MoF, 1 June 2026) — 2026-06-01
Last reviewed: By Kenobiz Solutions editorial team
General information, not tax or legal advice. For your specific case, consult an FTA-registered tax agent.