General UAE Legal Questions LawCabinet Resolution No. (106) of 2025 Regarding Administrative Violations and Fines Arising from Violations of the Legislations Regulating the Electronic Invoicing System

Article (1) Definitions The definitions set out in the aforementioned Federal Decree by Law No. (28) of 2022 shall apply to this Resolution. In addition, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: Electronic Invoice : An invoice that is issued, sent, and received in a structured electronic format that enables automated and electronic processing, in accordance with the Electronic Invoicing System.

-- 1 of 4 --

Cabinet Resolution of 2025 Regarding Administrative Violations and Fines Arising from Violations of the Legislation Regulating the Electronic Invoicing System 2 Electronic Credit Note : A credit note that is 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.

Article (2) Scope of Application 1. The provisions of this Resolution shall apply to violations of the legislation regulating the Electronic Invoicing System, in accordance with the aforementioned Federal Decree by Law No. (28) of 2022. 2. The provisions of this Resolution shall not apply to any person who issues, sends, shares, exchanges, or reports Electronic Invoices and electronic credit notes on a voluntary basis, in accordance with the resolutions issued in implementation of the provisions of the aforementioned Federal Decree by Law No. (28) of 2022.

-- 2 of 4 --

Cabinet Resolution of 2025 Regarding Administrative Violations and Fines Arising from Violations of the Legislation Regulating the Electronic Invoicing System 3

Article (4) Publication and Entry into Force This Resolution shall be published in the Official Gazette and shall enter into force on the day following the date of its publication. Mohammed bin Rashid Al Maktoum Prime Minister Issued by us: On: 17 Rabi’ al-Akhir 1447 A.H. Corresponding to: 9 October 2025 A.D.

-- 3 of 4 --

Cabinet Resolution of 2025 Regarding Administrative Violations and Fines Arising from Violations of the Legislation Regulating the Electronic Invoicing System 4 Schedule Annexed to Cabinet Resolution No. (106) of 2025 Regarding Administrative Violations and Administrative Fines Arising from Violations of the Legislation Regulating the Electronic Invoicing System SN Description of the Violation Amount of Administrative Fine 1 Failure of the Issuer to implement the Electronic Invoicing System, including failure to appoint an accredited service provider, within the timeline specified by the Minister. AED 5,000 (five thousand dirhams) for each month or part thereof of delay. 2 Failure of the Issuer to issue and send an Electronic Invoice to the Recipient through the Electronic Invoicing System within the timeline specified by the Minister. AED 100 (one hundred dirhams) per Electronic Invoice, up to a maximum of AED 5,000 (five thousand dirhams) per Gregorian month. 3 Failure of the Issuer to issue and send an electronic credit note to the Recipient through the Electronic Invoicing System within the timeline specified by the Minister. AED 100 (one hundred dirhams) per electronic credit note, up to a maximum of AED 5,000 (five thousand dirhams) per Gregorian month. 4 Failure of the Issuer to notify the Authority of the occurrence of a system failure within the timeline specified by the Minister. AED 1,000 (one thousand dirhams) for each day or part thereof of delay. 5 Failure of the Recipient to notify the Authority of the occurrence of a system failure within the timeline specified by the Minister. AED 1,000 (one thousand dirhams) for each day or part thereof of delay. 6 Failure of the Issuer or the Recipient to notify the appointed accredited service provider of any amendment to the data registered with the Authority within the timeline specified by the Minister. AED 1,000 (one thousand dirhams) for each day or part thereof of delay.

-- 4 of 4 --