UAE Enforces New VAT Input Verification Rules Under FTA Decision 13

The UAE Federal Tax Authority (FTA) Decision No. 13 of 2026 officially took effect on 1 October 2026, establishing mandatory procedures for taxable persons to verify the validity and integrity of received supplies prior to claiming input tax.

The measure builds upon Article 54 bis of the UAE VAT Law, which came into effect on 1 January 2026 and introduced a framework allowing authorities to deny input VAT deductions where a taxable entity knew, or should have known, that a supply was connected with tax evasion.

Under the new decision, holding a valid tax invoice is no longer treated as sufficient proof to secure input tax recovery. Taxable businesses must conduct due diligence on supplier identities, official corporate registrations, and operational addresses.

According to an analysis by Baker Tilly, companies are also required to document commercial rationales, review pricing arrangements, and maintain audit trails to prove reasonable care across supplier onboarding, procurement, accounts payable controls, and invoice review processes.