E-invoicing penalties under UAE Cabinet Decision 106 are an important compliance consideration for businesses preparing for the UAE’s electronic invoicing system. Cabinet Decision No. 106 of 2025 establishes administrative penalties for specific violations of the legislation regulating e-invoicing. Businesses may face AED 5,000 for each month or part of a month for failing to implement the electronic invoicing system or appoint an Accredited Service Provider within the prescribed timeline. A penalty of AED 100 may apply for each electronic invoice or electronic credit note that is not issued and transmitted within the required timeframe, subject to a monthly maximum of AED 5,000. Certain notification failures may attract AED 1,000 per day. Understanding UAE e-invoicing penalties, implementation deadlines, technical requirements, and reporting obligations can help businesses maintain compliance and avoid unnecessary financial exposure.