Tax invoice timing and penalty
We sometimes issue invoices a month after delivery. Is that a problem?
The situation
A tax invoice must be issued within 14 days of the date of supply. From 14 April 2026, failing to issue it in time carries AED 2,500 per detected case.
The law
- Art 67, Federal Decree-Law 8 of 2017: Tax invoice within 14 days of supply
- Cabinet Decision 129 of 2025 (from 14 April 2026): Revised VAT and excise penalties, including 14 percent a year late payment
What it means for you
Example: goods delivered on 1 May and invoiced on 5 June is late. Ten late invoices found in an audit could mean AED 25,000. Once e-invoicing applies, late issue also breaches e-invoicing rules. Fix the billing cycle now.
What to do
- Map your billing cycle against delivery dates.
- Invoice within 14 days of supply.
- Automate invoice creation from delivery notes.
- Spot-check monthly.
We can do this for youVAT return filing (VAT201) on EmaraTax: output and input VAT, reverse charge, corrections and payment: AED 850