- The UAE Federal Tax Authority issued Cabinet Decision No. 149 of 2026, effective October 1, 2026 (except for input tax apportionment from October 1, 2027), amending VAT Executive Regulations.
- Key changes include new rules for identifying composite supplies, modified input tax recovery for employee benefits (restricting accommodation), and restrictions on input tax recovery for certain cash payments.
- Significant revisions to the default input tax apportionment methodology shift it to an output-based method, and the Decision also revises tax computation for “medical products” and clarifies the Capital Asset Scheme.
Source EY
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