- Issuing authority
- Federal Tax Authority
- Jurisdiction
- United Arab Emirates
- Publication date
- November 11, 2026
- Stage
- Final rule
- Official document
- Public Clarification on Verification of the Validity and Integrity of the Supplies before Deduction of Input Tax
- Official source
- tax.gov.ae
The UAE Federal Tax Authority issued a public clarification on November 11, 2026, regarding input tax deduction compliance under value added tax regulations. The clarification outlines mandatory verification procedures that taxable entities must conduct to ensure supplies are not tied to tax evasion arrangements.
Under the released guidance, registered businesses must examine supplier corporate status, operational substance, commercial rationale, and payment structures before claiming input VAT recovery.
The Federal Tax Authority noted that failing to carry out and retain documented due diligence enables the tax authority to disallow VAT deductions on relevant transactions. The guidance aims to assist entities in aligning procurement and accounting processes with statutory tax audit standards.
Sources
- Federal Tax Authority · 2026-11-11
