Key 2025 UAE VAT Law Changes: Five-Year Input Tax Limit, Anti-Evasion, and Import Simplification

• Federal Decree-Law No. (16) of 2025 amends UAE VAT law to enhance compliance, prevent evasion, and introduce a five-year limit on recoverable input VAT.
• Self-invoicing for imports under the Reverse Charge Mechanism is removed, reducing administrative burden.
• Recoverable input VAT must be claimed or refunded within five years, or it is permanently lost; this applies retroactively to VAT periods from 2018 onward.
• Input VAT recovery will be denied if linked to tax evasion and the taxpayer knew or should have known.
• Businesses must urgently review and claim historical VAT balances before deadlines to avoid financial loss and increased FTA scrutiny.

Source: acme-group.me

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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