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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.

Published Source: PwC Middle East
Issuing authority
UAE Cabinet
Jurisdiction
United Arab Emirates
Publication date
September 22, 2026
Effective date
October 1, 2026
Stage
Amendment
Official document
Cabinet Decision No. 149 of 2026
Official source
www.pwc.com
Aerial view of Burj Al Arab along the Dubai coastline and Arabian Gulf

The UAE Cabinet has issued Cabinet Decision No. 149 of 2026, enacting extensive amendments to Cabinet Decision No. 52 of 2017 regarding the Executive Regulation of Value Added Tax, according to an update published by PwC Middle East.

According to the report, most provisions under the new decision are scheduled to come into force on 1 October 2026. However, the revised input tax apportionment rules will take effect from the first tax year commencing after 1 October 2027.

The regulatory updates introduce formal statutory criteria for composite supplies and modify conditions governing input tax recovery for employee accommodation and medical supplies. In addition, the decree establishes restrictions on input tax deductions for cash-settled transactions that exceed monetary limits set by the Minister of Finance.

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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.

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