- The UAE FTA’s Decision No. 13 of 2026 requires businesses to verify suppliers and transactions before claiming input VAT, effective 1 October 2026.
- Verification is mandatory for first-time suppliers or those not checked in the last 12 months, with stricter checks for individuals and companies.
- Enhanced due diligence applies to suppliers with over AED 375,000 in rolling 12-month transactions, including bank account confirmation and risk screening.
- Businesses must assess transaction legitimacy, payment methods, pricing, and goods ownership; small supplies under AED 10,000 may be exempt unless annual totals exceed AED 100,000.
- Companies must keep records and maintain a written supplier verification policy, or risk denial of input VAT deductions.
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.
