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UAE Cabinet

Policy & Legal Updates
Source: The Legal 500

UAE Cabinet Amends VAT Executive Regulations on Input Tax Apportionment

The UAE Cabinet has issued Cabinet Decision No. 149 of 2026, introducing substantial amendments to the UAE VAT Executive Regulations. The revision alters the standard input tax apportionment methodology under Article 55 for partially exempt businesses to an output-based ratio. Most general changes take effect on 1 October 2026, with the apportionment methodology taking effect from the first tax year starting after 1 October 2027.

Policy & Legal Updates
Source: The Legal 500

UAE Cabinet Updates VAT Executive Regulations and Input Tax Apportionment Methodology

The UAE Cabinet has issued Cabinet Decision No. 149 of 2026, amending the UAE VAT Executive Regulations. The update introduces an output-based input tax apportionment ratio under Article 55 for partially exempt businesses. General changes take effect on 1 October 2026, while the revised apportionment rules apply from the first tax year starting after 1 October 2027.

Policy & Legal Updates
Source: PwC Middle East

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

The UAE Cabinet has issued Cabinet Decision No. 149 of 2026, amending Cabinet Decision No. 52 of 2017 on the Executive Regulation of Value Added Tax. The updates introduce statutory criteria for composite supplies, modify input tax recovery on employee accommodation and medical supplies, and restrict deductions on cash transactions exceeding specific thresholds. Most provisions take effect on 1 October 2026, with input tax apportionment rules applying from the first tax year starting after 1 October 2027.

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