UAE Amends VAT Law for 2026: Streamlined Compliance, Refund Limits, and Stronger Anti-Evasion Measures

UAE will amend its Federal VAT Law effective 1 January 2026, focusing on administrative simplification, standardisation, and anti-avoidance.
The self-invoice requirement for reverse charge will be removed; taxpayers must retain standard supporting documentation instead.
A five-year statutory limitation will apply to VAT refund claims, after which recovery is not permitted.
The Federal Tax Authority will have explicit powers to deny input-tax deductions linked to tax evasion, requiring taxpayers to verify the legitimacy of supplies.
The changes aim to align with international practices, streamline compliance, and strengthen risk-based enforcement.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.