UAE Implements Mandatory VAT Supplier Due Diligence Rules for Input Tax Deductions
The UAE Federal Tax Authority has issued Decision No. 13 of 2026, establishing mandatory supplier due diligence requirements for input VAT deductions effective October 1, 2026. Under the rules implementing Article 54 bis of the UAE VAT Law, businesses must formally verify vendor identities, premises, and commercial rationale to avoid denial of tax recovery. Specific controls, including UAE bank account verifications, apply to annual transactions exceeding AED 375,000.




