Policy update

Policy & Legal Updates

UAE Imposes Stricter VAT Due Diligence Requirements for Input Tax Recovery

The UAE Federal Tax Authority has introduced Decision No. 13 of 2026, requiring businesses to execute and document specific checks on suppliers and individual transactions before claiming input VAT deductions. Taking effect on 1 October 2026, the regulation implements Article 54 bis of the UAE VAT Law to prevent tax evasion across supply chains. Compliance rules introduce specific rolling 12-month transaction thresholds of AED 100,000 and AED 375,000.

Policy & Legal Updates

UAE Tax Authority Issues Mandatory E-Invoicing Deadlines for Businesses

The UAE Federal Tax Authority has warned businesses to prepare for the nationwide mandatory e-invoicing framework. Companies with annual revenues of AED 50 million or more must appoint an Accredited Service Provider by October 30, 2026. Entities earning under AED 50 million face a deadline of March 31, 2027, with penalties anticipated for non-compliance.

Policy & Legal Updates

Banqup Delivers UAE Tax Authority Peppol Corner 5 Node Ahead of 2027 Mandate

Belgian firm Banqup Group has developed and will operate the Peppol Corner 5 access point for the UAE Federal Tax Authority. The node will validate invoice tax data under the Ministry of Finance's mandatory e-invoicing system starting in 2027.

Policy & Legal Updates

UAE Modifies Economic Substance Regulations Reporting Requirements Under Cabinet Decision No. 98

The UAE Ministry of Finance has updated the scope of Economic Substance Regulations under Cabinet Decision No. 98 of 2024. Companies are no longer required to file annual ESR notifications or reports for financial years ending after December 31, 2022. Free zone businesses seeking a 0% corporate tax rate must still demonstrate adequate substance.