Six Essential Steps for UAE Businesses to Comply with the New VAT ‘Should Have Known’ Rule

• From January 1, 2026, UAE businesses can lose input VAT claims if they “knew or should have known” a transaction was linked to VAT fraud.
• The law increases responsibility on businesses to verify suppliers and ensure transactions are genuine, even if no intentional wrongdoing occurred.
• Six steps to protect against risk: verify suppliers, use risk profiling, watch for red flags, strengthen contracts, automate checks, and maintain documentation.
• Simple, sensible checks and automation can help businesses comply and avoid costly denied VAT claims.

Source: consultancy-me.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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