The UAE Federal Tax Authority is enacting tighter VAT regulations effective October 1. Tax authorities now hold the power to deny VAT refund claims if transactions are linked to tax evasion across the supply chain under a 'should have known' standard.
UAE businesses generating annual revenue of Dh50 million or more must appoint an Accredited Service Provider by October 30, 2026, ahead of mandatory e-invoicing starting January 1, 2027. Smaller enterprises and government entities face a provider appointment deadline of March 31, 2027, prior to phased go-live dates later that year. Non-compliance results in a monthly penalty of Dh5,000 under Cabinet Decision No. 106 of 2025.
The UAE has established compliance timelines for its mandatory electronic invoicing system, requiring large firms to appoint an Accredited Service Provider by October 30, 2026. Entities failing to appoint an approved provider within the statutory deadlines face monthly administrative penalties of Dh5,000. Phased mandatory go-live dates run from January 1, 2027 through October 1, 2027.
The UAE Federal Tax Authority has announced phased compliance deadlines for its mandatory e-invoicing system based on annual revenue thresholds. Businesses earning AED 50 million or more must implement the system by January 1, 2027, while those below the threshold have until July 1, 2027. Entities are required to engage accredited service providers ahead of their respective operational deadlines.
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