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Federal Tax Authority

Policy & Legal Updates
Source: Dubai Business and Tax Advisors

UAE Implements FTA Decision 17 of 2026 on Employee Expense VAT Recovery

The UAE Federal Tax Authority's Decision No. 17 of 2026 entered into force on October 1, 2026, setting strict statutory conditions for recovering input VAT on employee expenses. The decision replaces the former 'normal business practice' benchmark across categories including accommodation, transport, meals, and medical coverage. Taxable entities must maintain clear contracts and policies, as partial compliance results in total deduction denial.

Policy & Legal Updates
Source: Emirates News Agency

UAE Joins 126th GCC Financial and Economic Cooperation Committee Meeting in Bahrain

The UAE participated in the 126th GCC Financial and Economic Cooperation Committee meeting in Manama, Bahrain. Discussions focused on advancing regional financial integration, expanding the GCC Common Market, and enhancing cross-border tax and customs policies. The UAE delegation included senior representatives from finance, tax, and customs authorities.

Policy & Legal Updates
Source: Dubai Business and Tax Advisors

UAE Enacts Revisions to VAT Regime and Input Tax Recovery Rules

The UAE has introduced significant revisions to its Value Added Tax regime, primarily enacted through Cabinet Decision No. 149 of 2026. The new framework restricts input tax recovery on cash transactions exceeding an upcoming ministerial threshold and mandates supplier integrity checks under FTA Decision No. 13 of 2026. Further clarifications address employee accommodation expenses, capital assets, single composite supplies, and e-invoicing timelines.

Policy & Legal Updates
Source: Baker Tilly

UAE Enforces New VAT Input Verification Rules Under FTA Decision 13

The UAE Federal Tax Authority's Decision No. 13 of 2026 took effect on 1 October 2026, establishing mandatory procedures to verify supplies before claiming input tax deductions. Under the rules, a valid tax invoice alone is no longer sufficient to recover input VAT. Taxable businesses must carry out due diligence on suppliers to demonstrate reasonable care and prevent transactions tied to tax evasion.

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