21/08/2026
Your “Purchase Invoice” May No Longer Be Enough On Its Own
From 1 October 2026, FTA Decision No. 13 of 2026 requires VAT-registered businesses to actively verify their suppliers before deducting Input Tax - not just hold a compliant invoice.
You'll need to verify:
• Verify supplier identity (Emirates ID/passport for individuals, trade license, authorised signatory for companies);
• Confirm the supplier actually operates from where they say they do;
• Watch for risk flags - frequent address changes, staff turnover, unusual deal sizes;
• Payment method and commercial rationale.
The thresholds that matter:
- Supplies under AED 10,000 (excl. VAT) are exempt from these checks - unless that same supplier crosses AED 100,000 with you in any rolling 12 months.
- Cross AED 375,000 with a supplier, and you'll also need bank account confirmation and a review of their public standing.
This is the FTA moving from "do you have an invoice" to "can you prove the deal was real." Procurement and vendor onboarding processes need a relook before October.
Remember - it's not enough to do this once. Business owners are expected to document this as a retained policy - showing who's responsible and how it's enforced.
DM us if you want a quick read on how this hits your business.
FTA Decision No. 13 of 2026, effective 1 Oct 2026
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