GCC TAX LAWS

Tax TreatiesBlogsNews
Login

Beta Version

Website Last updated:

May 15, 2026

On the Violations and Administrative Penalties Resulting from Violation of the Legislation Regulating the Electronic Invoicing System

Cabinet Decision No. 106 of 2025

The Cabinet,

  • Having reviewed the Constitution,

  • Federal Law No. 1 of 1972 on the Competences of the Ministries and Powers of the Ministers, and its amendments,

  • Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,

  • Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments,

  • Federal Decree-Law No. 28 of 2022 on Tax Procedures, and its amendments,

  • Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, and its amendments, and

  • Pursuant to what was presented by the Minister of Finance and approved by the Cabinet, Has decided:

Article 1 - Definitions

Definitions in the Federal Decree-Law No. 28 of 2022 referred to shall apply to this Decision, and other than this, the following words and expressions shall have the meanings assigned against each, unless the context requires otherwise:

Electronic Invoice

:

An invoice issued, transmitted, and received in a structured electronic format that enables automatic and electronic processing, in accordance with the Electronic Invoicing System.

Electronic Credit Note

:

A credit note issued, transmitted, and received in a structured electronic format that enables automatic and electronic processing, in accordance with the Electronic Invoicing System.

Issuer

:

Any Person who is obligated to issue, transmit, share and exchange Electronic Invoices and Electronic Credit Notes through the Electronic Invoicing System.

Recipient

:

Any Person who shall receive Electronic Invoices and Electronic Credit Notes through the Electronic Invoicing System.

System Failure

:

Any technical malfunction, disruption, or unavailability of the Electronic Invoicing System that prevents the Issuer or Recipient from complying with their obligations under the legislation in force.

Article 2 - Scope of this Decision

  1. The provisions of this Decision shall apply to the violation of the legislation regulating the Electronic Invoicing System, in accordance with the Federal Decree-Law No. 28 of 2022 referred to.

  2. The provisions of this Decision shall not apply to the Person who issues, transmits, shares, exchanges or reports Electronic Invoices and Electronic Credit Notes, on a voluntarily basis, in accordance with the decisions issued pursuant to Federal Decree-Law No. 28 of 2022 referred to.

Article 3 - Violations and Administrative Penalties