What are the penalties for not complying with UAE e-invoicing?
Cabinet Decision No. 106 of 2025 sets AED 5,000 a month for delay in implementing the system, including not appointing a provider on time; AED 100 for each e-invoice or credit note not issued on time, capped at AED 5,000 a month each; and AED 1,000 a day for not notifying the provider of changes.
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System failure notifications
The decision also sets AED 1,000 a day for failing to notify the FTA of a system failure. Ministerial Decision 197 of 2026 repealed the system failure article of Decision 243 from 1 October 2026, so check the FTA's current procedures for how outages are handled.
Voluntary users
Article 2 of the decision excludes people who issue e-invoices voluntarily, and Decision 197 confirms the penalty decisions do not apply to them.
Where SupaJack Construct fits
SupaJack Construct does not transmit e-invoices. It stores the company's Peppol endpoint ID and produces tax invoices and credit notes with the data a provider needs, and the company's accredited service provider handles exchange and reporting.
Related tools and guides
See the answers on when e-invoicing starts, what an e-invoice is, accredited service providers, the 14 business day deadline and whether SupaJack Construct sends e-invoices, plus the VAT guide for contractors and finance and VAT in SupaJack Construct.
Worked example
A main contractor in scope from 1 January 2027 has not appointed a provider by then and goes live on 15 March. It faces AED 5,000 for January, February and part of March, AED 15,000, plus up to AED 5,000 a month for e-invoices not issued in that time.
Questions people ask
What is the penalty for late appointment of a provider?
AED 5,000 per month or part month of delay.
Is the per-invoice penalty capped?
Yes, at AED 5,000 per calendar month.
Are voluntary users penalised?
No.