Trained on comprehensive UAE tax legislation
Last updated on Nov 16, 2025
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Latest Summaries
Cabinet Decision No. 40 of 2017 and its amendments
Published: Oct 2025This Cabinet Decision sets out the complete list of administrative penalties for violating UAE tax laws, including the Tax Procedures Law, Excise Tax Law, and VAT Law. It outlines penalties for failures such as not keeping proper tax records, late registration or deregistration, late tax return submission, late payment of taxes, and submitting incorrect or incomplete tax information. The decision also imposes significant consequences for not disclosing errors before an audit, obstructing tax auditors, mishandling goods in Designated Zones, and failing to issue required tax invoices or credit notes. Penalties range from fixed fines to monthly percentage-based charges on unpaid tax, and may reach the higher of AED 50,000 or 50% of the tax due in certain excise and VAT cases. The decision confirms that penalties do not replace the obligation to pay the underlying tax and provides a formal process for objections.
Federal Decree-Law No. 7 of 2017 and its amendments
Published: Sept 2025Federal Decree-Law No. 7 of 2017 establishes the UAE’s Excise Tax system, detailing which goods are subject to tax—such as those harmful to health—and the activities that trigger taxation, including production, import, release from designated zones, and stockpiling. The law explains how excise tax is calculated, with rates set by Cabinet Decision, and places responsibility for payment on producers, importers, stockpilers, and warehouse keepers. It defines rules for tax registration, deregistration, and exceptions, as well as record-keeping obligations and the requirement for advertised prices to be tax-inclusive. The law also sets out the conditions for deductible tax, refunds, movements of excise goods within designated zones, and the handling of excess refundable tax. Violations — such as failing to display tax-inclusive prices or improper handling of excise goods — trigger administrative penalties, while intentional evasion is treated as a serious offence. Amendments introduced in 2022 and 2025 refine definitions, tax calculation rules, registration timelines, deductible tax, and the statute of limitation for audits and assessments.
Ministerial Decision No. 244 of 2025
Published: Sep 2025Ministerial Decision No. 244 of 2025 sets out the framework for implementing the UAE’s national Electronic Invoicing System (E-Invoicing). It defines the scope of who must comply, including all persons subject to the system, voluntary adopters, and any other persons determined by the Ministry. The decision establishes a Pilot Programme beginning on 1 July 2026, where selected businesses may participate by agreement and must meet all technical requirements. From 2027, mandatory implementation occurs in phases: large businesses with revenue of AED 50 million or more must adopt e-invoicing by 1 January 2027, smaller businesses by 1 July 2027, and government entities by 1 October 2027, each required to appoint an Accredited Service Provider beforehand. Business-to-consumer transactions are excluded until a future decision specifies otherwise. All entities covered must follow the technical standards and onboarding requirements issued by the Ministry and the Federal Tax Authority.
Ministerial Decision No. 243 of 2025
Published: Sept 2025Ministerial Decision No. 243 of 2025 establishes the UAE’s national Electronic Invoicing System and sets the rules for issuing, transmitting, exchanging, and reporting electronic invoices and credit notes. The system applies to all business transactions in the UAE unless the person or transaction is specifically excluded, such as sovereign government activities, certain international airline services, and exempt or zero-rated financial services. Businesses subject to the system must use an Accredited Service Provider to issue and receive electronic invoices, ensure that all mandatory data fields are included, and transmit the documents within 14 days of the business transaction. Both issuers and recipients are required to report electronic invoices and credit notes to the Federal Tax Authority and store all related data within the UAE in accordance with the Tax Procedures Law. The decision permits agents and self-billing arrangements in specific cases, requires system failures to be reported within two business days, and confirms that implementation will proceed in phases determined by the Minister.
