- VAT law amendments will take effect in the UAE from January 1, 2026, aiming to simplify procedures and enhance transparency.
- Taxpayers 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 amendments aim to strengthen governance, support public resource sustainability, and boost the UAE’s economic competitiveness.
Source: mof.gov.ae
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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