The United Arab Emirates (UAE) is known for its dynamic business environment, attracting international trade and commerce. To ensure transparency and regulatory adherence in this thriving landscape, the UAE government introduced Cabinet Resolution (38) of 2022, which focuses on the attestation of commercial invoices for goods valued at AED10,000 or higher. These regulations officially came into effect on February 1st, 2023, marking a significant shift in compliance requirements for businesses operating in the UAE.
The Importance of Compliance
The core objective of Cabinet Resolution (38) is to streamline the attestation process for commercial invoices. By imposing this directive, the government aims to ensure fairness and transparency in trade practices, particularly when it comes to transactions within multinational business groups. Compliance with these regulations is of paramount importance, as non-compliance can result in substantial penalties.
Penalties for Non-Compliance
Failure to adhere to Cabinet Resolution (38) carries the risk of incurring a fine of AED500 for each unattested invoice.
Importantly, these fines are payable by the consignee, adding an additional layer of responsibility to businesses involved in importing goods into the UAE.