The UAE will require all businesses to use electronic invoicing from July 2026. This system means invoices, credit notes, and notifications must be sent electronically to the Federal Tax Authority (FTA) in a structured, readable format like XML. This replaces paper or PDF invoices and aims to make tax reporting faster and more accurate. Cabinet Decision No. 106 of 2025 sets strict fines for businesses that fail to comply. Companies face a Dh5,000 fine per month if they delay setting up the e-invoicing system or don’t hire an accredited service provider. Not issuing electronic invoices or credit notes on time leads to Dh100 fines per invoice or credit note, capped at Dh5,000 each month. If businesses don’t report system failures to the FTA on time, the fine is Dh1,000 per day. Similarly, failing to update service providers about changes to registered data also carries Dh1,000 daily fines. These penalties add up, pushing companies to be careful and quick in compliance. This move stresses the need for strong management of business data. Companies must communicate any changes in registration details quickly to their service providers or risk heavy daily fines. The UAE’s new e-invoicing rules push businesses to improve their systems, controls, and response speeds. Early readiness is key to avoid costly penalties and stay in line with government demands.