- The UAE Ministry of Finance has issued amendments to the Value Added Tax law, effective January 1, 2026, to enhance tax system efficiency and transparency.
- Taxpayers are no longer required to issue self-invoices under the reverse charge mechanism but must retain supporting documents for supply transactions.
- A five-year limit is set for reclaiming excess refundable tax, after which the right to reclaim expires, promoting financial certainty and fairness.
- The Federal Tax Authority can deny input tax deductions if supplies are linked to tax evasion, requiring taxpayers to verify the legitimacy of supplies.
- The amendments aim to strengthen governance, combat tax evasion, and support the UAE’s economic competitiveness and sustainability.
Source: zawya.com
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.
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