E-Invoicing Penalty Calculator
Estimate your monthly and annual exposure to UAE FTA e-invoicing penalties under Cabinet Decision No. 106 of 2025.
Based on the penalty schedule in UAE Cabinet Decision No. 106 of 2025 and the Ministry of Finance E-Invoicing Guidelines (Version 1, 23 February 2026).
Your compliance phase
Determines when the mandate applies to your business.
Current compliance status
Select the option that best describes your situation.
Monthly invoice volumes
Enter your typical monthly B2B/B2G invoice and credit note volumes.
Capped at AED 5,000/month (50+ invoices)
Estimated exposure
AED 31,500
Over 3 months · AED 10,500/month
Monthly breakdown
System non-implementation
AED 5,000 / month — no ASP appointed or system not transmitting
AED 5,000
/ month
Late invoice transmission
50 invoices × AED 100, capped at AED 5,000/month
AED 5,000
/ month
Late credit note transmission
5 credit notes × AED 100, capped at AED 5,000/month
AED 500
/ month
Monthly total
AED 10,500
Annual projection
AED 126,000
3-month total
AED 31,500
Avoid this exposure entirely
Nazm connects your accounting software to the FTA-approved Peppol network and handles every transmission automatically.
Penalty schedule
Cabinet Decision No. 106 of 2025, as of July 2026
- System non-implementationAED 5,000 / month
- Late invoice transmissionAED 100 each (max AED 5,000/mo)
- Late credit note transmissionAED 100 each (max AED 5,000/mo)
- Malfunction non-notificationAED 1,000 / day
Important disclaimer — please read
Indicative estimates only. The figures produced by this calculator are approximate estimates for general awareness purposes. They are not a legally accurate calculation of your actual penalty exposure and should not be relied upon as such.
Not tax or legal advice. This tool does not constitute tax advice, legal advice, or a professional assessment of your compliance obligations. Your actual penalty liability depends on your specific business circumstances, the precise application of Cabinet Decision No. 106 of 2025 and related regulations, and determinations made by the Federal Tax Authority.
No liability. Nazm and its affiliates accept no responsibility or liability for any loss, damage, or consequence arising from reliance on the estimates produced by this calculator, including any errors, omissions, or miscalculations. The penalty framework may be amended, and the rules may be applied differently to individual businesses.
Verify with authorities. Always confirm your specific compliance obligations and penalty exposure with the Federal Tax Authority (FTA), the UAE Ministry of Finance, or a qualified tax adviser before making business decisions.
Based on UAE Cabinet Decision No. 106 of 2025 and UAE Ministry of Finance Electronic Invoicing Guidelines (Version 1, 23 February 2026). Last reviewed June 2026.
How the penalties work
Non-implementation penalty
If you have not appointed an Accredited Service Provider (ASP) or your system is not transmitting by your mandatory go-live date, the FTA can apply a AED 5,000 monthly penalty for every month you remain non-compliant.
Per-invoice & per-credit-note penalty
Each invoice or credit note you fail to transmit on time attracts a AED 100 penalty. Crucially, invoices and credit notes each have their own independent monthly cap of AED 5,000 — so both caps can apply simultaneously.
System malfunction notification
If your e-invoicing system fails, you must report it to the FTA within two business days. Failing to notify attracts AED 1,000 per day until notification is made. This penalty runs independently of the others.
When do penalties start?
Phase 1 businesses (revenue ≥ AED 50M) must be live by 1 January 2027. Phase 2 businesses (revenue < AED 50M and government entities) must be live by 1 July 2027. Penalties accrue from the day after your mandatory go-live date.
Frequently missed rules
Do the invoice and credit note caps stack?
Yes. The AED 5,000/month cap applies separately to invoices and to credit notes. A business transmitting 100 invoices and 100 credit notes late in one month could face up to AED 10,000 in per-document penalties alone, on top of the non-implementation fee.
Is there a grace period after the go-live date?
There is no confirmed general grace period after the mandatory go-live date. The voluntary phase (from 1 July 2026) and the ASP appointment deadlines are the key early milestones — missing them brings you closer to penalty territory.
Do intra-VAT-group transactions count?
Transactions between members of the same VAT group are in scope but have a temporary 24-month grace period beginning 1 January 2027. All other B2B and B2G transactions have no such relief.
What counts as 'on time' for transmission?
The exact transmission window is specified in the guidelines. Your ASP validates and routes the invoice; delays caused by your system or data errors count against you. Nazm pre-validates before the ASP step to catch issues early.
Make these penalties irrelevant.
Nazm connects your accounting software to the FTA-approved Peppol network. Automatic transmission, built-in validation, zero missed deadlines.