UAE Issues New VAT Rules on Supplier Verification Before Input Tax Recovery

The UAE Federal Tax Authority has issued FTA Decision No. 13 of 2026, introducing extensive supplier and supply verification obligations for VAT-registered entities, according to law firm Meyer-Reumann & Partners.

Scheduled to take effect on 1 October 2026, the decision establishes a mandatory due-diligence framework. Under the new rules, taxable persons must confirm supplier identities and business legitimacy prior to recovering input tax.

Taxable businesses are required to check corporate registration documents and authorized representatives, as well as review transactions against statutory risk thresholds set at AED 100,000 and AED 375,000. An initial verification must occur during supplier onboarding, followed by a mandatory refresh at least once every 12 months.

Meyer-Reumann & Partners notes that failure to implement and maintain the required verification documentation entitles tax authorities to deny input VAT recovery claims.