UAE Announces Major VAT Amendments Effective January 2026, Introducing New Compliance and Refund Rules

• UAE VAT amendments will take effect on January 1, 2026, aiming to simplify procedures and enhance transparency.
• Self-invoicing for the reverse charge mechanism is removed; businesses must keep supporting documents instead.
• A five-year deadline is introduced for reclaiming excess refundable VAT, after which claims are not accepted.
• The Federal Tax Authority can deny input-tax deductions for transactions linked to tax evasion, requiring businesses to verify supply legitimacy.
• The changes include new documentation requirements, refund deadlines, and compliance controls to strengthen the tax system.

Source: globalvatcompliance.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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