UAE to Amend VAT Rules from January 2026 to Simplify Tax Procedures and Boost Compliance

• UAE will amend VAT rules effective January 1, 2026, to simplify tax procedures and align with international standards.
• Taxable persons no longer need to issue self-invoices under the reverse charge mechanism but must retain supporting documents.
• A five-year limit is set for reclaiming excess refundable tax, after which the right expires.
• The Federal Tax Authority can deny input tax deductions if supplies are linked to tax evasion, requiring taxpayers to verify supply legitimacy.
• The changes aim to improve administrative efficiency, combat tax evasion, and promote fairness and transparency in the tax system.

Source: thenationalnews.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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