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Federal Tax Authority

Policy & Legal Updates
Source: Legarithm

UAE Implements Mandatory Supplier Due Diligence for Input VAT Recovery

Effective 1 October 2026, holding a valid tax invoice alone is no longer sufficient to recover input VAT in the UAE under FTA Decision No. 13 of 2026. Businesses must perform structured due diligence on suppliers and transactions to avoid denial of VAT deductions linked to supply chain evasion. Transactions over AED 375,000 on a rolling 12-month basis trigger enhanced verification requirements, including bank confirmation letters.

Policy & Legal Updates
Source: VATupdate

UAE Amends VAT Executive Regulation Under Cabinet Decision No. 149 of 2026

The UAE Cabinet has issued Decision No. 149 of 2026 amending the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax, effective 1 October 2026. The revisions introduce an anti-fragmentation rule for supplies, restrict input VAT recovery on qualifying cash transactions, and clarify conditions for claiming input VAT on employee benefits. Further updates address financial services recovery criteria, medical products, profit margin schemes, capital assets, and tax credit notes.

Policy & Legal Updates
Source: Vistra

UAE Outlines Regulatory Shifts Across E-Invoicing, VAT Rules and Corporate Structuring

Corporate services firm Vistra has highlighted four significant regulatory resets shaping the UAE's tax compliance and corporate structuring framework. Key updates include the phased rollout of mandatory e-invoicing beginning in 2027, amended value-added tax rules under Federal Decree-Law No. 16 of 2025, and corporate vehicle changes in the Dubai International Financial Centre. The measures combine stricter reporting obligations and anti-evasion enforcement with flexible structuring regimes like Variable Capital Companies.

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