Tax penalties: UAE legislation

Cabinet Decision No. 106 of 2025 on the Violations and Administrative Penalties Resulting from the Violation of the Legislation Regulating the Electronic Invoicing System

Fixes the penalties for e-invoicing breaches: AED 5,000 for each month of delay in implementing the system, including failing to appoint an Accredited Service Provider on time, and AED 100 per electronic invoice or credit note not issued and transmitted on time, capped at AED 5,000 per calendar month.

Cabinet Decision No. 129 of 2025 Amending Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE

Amends the definitions in Article 1 and replaces Tables 1 and 3 of the tax penalties decision, restating the penalties for tax procedures and VAT violations with effect from 14 April 2026; the FTA publishes it within the consolidated text of Cabinet Decision No. 40 of 2017.

Cabinet Decision No. 75 of 2023 on the Administrative Penalties for Violations Related to the Application of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

Lists the administrative penalties for corporate tax violations: AED 10,000 for failing to keep records (AED 20,000 on repeat), AED 500 per month rising to AED 1,000 for late returns, and, since Cabinet Decision No. 10 of 2024 took effect on 1 March 2024, AED 10,000 for late tax registration.

Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE

Sets in three tables the fixed and percentage-based administrative penalties the FTA imposes for breaches of the Tax Procedures Law, the Excise Tax Law and the VAT Law, such as late registration, late returns, late payment, record-keeping failures and incorrect invoices; consolidated as amended by Cabinet Decisions No. 49 of 2021, No. 108 of 2021 and No. 129 of 2025.