Legarithm

Policy & Legal Updates

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

UAE Sets E-Invoicing Compliance Deadlines and Penalties for Businesses

A compliance advisory outlines statutory deadlines and penalties under the UAE's electronic invoicing regime. Companies with annual revenue of at least AED 50 million must appoint an Accredited Service Provider by October 30, 2026, ahead of the January 1, 2027 launch. Penalties for non-compliance include monthly fines of AED 5,000 and charges for unissued invoices.