Starting 1 October 2026, a valid tax invoice alone will no longer be enough to recover input VAT in the UAE. Federal Tax Authority (FTA) Decision No. 13 of 2026 inserts a new due-diligence requirement into the VAT Law: businesses must verify that a supplier genuinely exists, is properly incorporated, and matches the identity on its invoice, before claiming input VAT.
Key points:
- Verification must repeat at least once every 12 months per supplier.
- Suppliers billing more than AED 375,000 in a rolling 12-month period trigger enhanced due diligence (bank confirmation, reputational screening).
- Invoices under AED 10,000 are exempt, unless the same supplier's cumulative total exceeds AED 100,000 in 12 months.
- A documented, written verification policy is now mandatory, separate from whether individual checks were performed.
Full breakdown of the thresholds, worked examples, penalties, and a pre-deadline compliance checklist: read the full guide on Qaspro Global.
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