Legislation Details
- Full Title: Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System
- Law Type: Cabinet Resolution
- Law Number: No. (106) of 2025
- Issued Date: 09 Oct 2025
- Effective Date: 15 Oct 2025
- Official Gazette: No. 809
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 8
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates administrative violations and fines arising from non-compliance with the legislations governing the UAE's electronic invoicing system. The purpose is to ensure businesses and individuals properly issue, send, receive, and process electronic invoices and credit notes as required by law. The Resolution is significant for any company or individual involved in the electronic invoicing ecosystem, as it outlines the specific penalties for various violations, empowering the authorities to enforce compliance. Businesses must familiarize themselves with these rules to avoid facing substantial fines and other administrative sanctions. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 1-4)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate administrative violations and fines related to non-compliance with the legislations governing the UAE's electronic invoicing system. It applies to any person or entity obligated to issue, send, share, exchange, or receive electronic invoices and credit notes in accordance with the applicable laws. The purpose is to empower the authorities to enforce compliance with the electronic invoicing requirements through the imposition of administrative penalties. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Electronic Invoice: An invoice issued, sent, and received in a structured electronic format that enables automated and electronic processing, in accordance with the Electronic Invoicing System.
- Electronic Credit Note: A credit note issued, sent, and received in a structured electronic format that enables automated and electronic processing, in accordance with the Electronic Invoicing System.
- Issuer: Any person obligated to issue, send, share, and exchange Electronic Invoices and electronic credit notes, in accordance with the Electronic Invoicing System.
- Recipient: Any person obligated to receive Electronic Invoices and electronic credit notes through the Electronic Invoicing System.
- System Failure: Any technical malfunction, outage, or unavailability of the Electronic Invoicing System that prevents the issuer or the recipient from complying with their obligations under the applicable legislation.
(Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 1)
What are the main obligations and requirements?
The key obligations under this Resolution are: 1. Issuers must issue, send, share, and exchange electronic invoices and credit notes in accordance with the Electronic Invoicing System. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 1) 2. Recipients must receive electronic invoices and credit notes through the Electronic Invoicing System. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 1) 3. All persons must comply with the legislations regulating the Electronic Invoicing System, as referenced in Federal Decree-Law No. (28) of 2022 on Tax Procedures. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 2)
What are the penalties for non-compliance?
The Resolution imposes the following administrative fines for violations related to the Electronic Invoicing System: 1. Failure to issue, send, share, or exchange an electronic invoice or credit note: AED 5,000 per violation. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 3) 2. Failure to receive an electronic invoice or credit note: AED 2,500 per violation. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 3) 3. Failure to comply with any other requirement under the legislations regulating the Electronic Invoicing System: AED 1,000 per violation. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 3)
When did this law come into effect?
This Cabinet Resolution was published in the Official Gazette No. 809 and entered into force on the day following the date of its publication, which was 15 October 2025. (Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System, 2025, Art. 4)
Source Documents
This article analyses Cabinet Resolution Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.