The penalty table
| Failure | Penalty | Cap |
|---|---|---|
| Not implementing the e-invoicing system, or not appointing an accredited provider, by the deadline | AED 5,000 per month, or part of a month | Runs until you comply |
| Not issuing or transmitting an e-invoice as required | AED 100 per e-invoice | AED 5,000 per month |
| Not issuing or transmitting an e-credit note as required | AED 100 per e-credit note | AED 5,000 per month |
| Not notifying the FTA of a system failure within 2 business days | AED 1,000 per day of delay | — |
| Not notifying your provider of changes to your registered data in time | AED 1,000 per day of delay | — |
Read the caps carefully. A business that keeps issuing PDF invoices after its go-live date reaches the AED 5,000 monthly cap on invoices after fifty documents, and the same again on credit notes, every month it continues. The cap limits the fine; it does not make the practice compliant, and your customers, who must receive and process your invoices through the system too, will notice long before the FTA does.
When they start applying to you
| You are… | Penalties apply from |
|---|---|
| A business with revenue of AED 50 million or more | 1 January 2027 (provider to be appointed by 30 October 2026) |
| Any other business | 1 July 2027 (provider to be appointed by 31 March 2027) |
| Using e-invoicing voluntarily before your phase | No penalties until your mandatory date |
Staying clear, in practice
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Appoint early and check it shows as active
The monthly AED 5,000 is about being set up. Appoint your provider in EmaraTax well before your date and confirm the link is active, not just requested.
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Make the e-invoice the only invoice
Per-invoice penalties come from documents raised outside the system: a manual invoice from a branch, a PDF from an old template. One issuing path, and those disappear.
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Correct with credit notes, never by editing
A reduction, a return or an error after issue is an e-credit note. Editing a reported invoice is both impossible on the network and a missing credit note in the eyes of the penalty table.
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Have a written outage procedure
If you cannot issue because a system is down, the FTA must hear about it within 2 business days. Decide now who notifies, how, and how the backlog is issued afterwards.
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Tell your provider when your details change
A new address, trade name or TRN detail confirmed by the FTA must reach your provider within 5 business days. Put it on the same checklist as updating EmaraTax.
Questions people actually ask
When do e-invoicing penalties start in the UAE?
From the date e-invoicing becomes mandatory for you: 1 January 2027 for businesses with revenue of AED 50 million or more, and 1 July 2027 for others. Appoint your provider by the earlier deadline for your group so you are not exposed to the monthly penalty from day one.
Are there penalties during the pilot?
No. Businesses using the system voluntarily before their mandatory date are outside the penalties until that date.
Is the AED 100 penalty per invoice unlimited?
No. It is capped at AED 5,000 a month for e-invoices, and separately at AED 5,000 a month for e-credit notes.
Where these facts come from
Checked against the following on 8 October 2026. Rules and dates change — if you are reading this long after that date, verify before you act on it.
- Cabinet Decision No. 106 of 2025 — e-invoicing penalties (summary)
- Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System
- Ministry of Finance — eInvoicing programme
WisoBooks is a bookkeeping and business-management tool, not an accounting, tax or legal advisor. Nothing on this page is tax advice, and tax rules change. Confirm your own obligations with the relevant authority or a qualified advisor.
