UAE VAT e-invoicing penalties revised

The UAE has revised its e-invoicing penalties. Cabinet Decision No. 173 of 2026 repeals Decision No. 106 of 2025 and changes how non-compliance is penalised:

• Failing to implement the system now costs AED 5,000 a month, capped at AED 50,000 in any 12 months.
• Recipients, not only Issuers, now face this penalty.
• The penalties for not reporting a System Failure have been removed.
• The daily penalty for not updating ASP data drops from AED 1,000 to AED 250.

Read our alert for what this means and what to do now.