- Effective 1 October 2026, UAE businesses must do more than hold a valid tax invoice to recover Input VAT; they must verify suppliers and the legitimacy of supplies.
- Required checks include supplier identity, incorporation, physical location, risk indicators, and annual refresh of due diligence.
- For suppliers with annual spend above AED 375,000, extra checks are needed: written UAE bank account confirmation and a public reputation review.
- Small supplies under AED 10,000 are generally exempt, unless total supplies from that supplier are expected to reach AED 100,000 in a rolling 12 months.
- Businesses must use electronic payments where possible, document any exceptions, and maintain internal policies and audit trails or risk denial of Input VAT recovery.
Source: regfollower.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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