27/08/2026
Quick check: Is your business verifying suppliers before claiming input VAT?
From 1 October 2026, UAE VAT-registered businesses must follow new supplier and transaction-verification procedures under FTA Decision No. 13 of 2026.
How prepared is your business?
Ready | Reviewing | Not started
Key requirements include:
✅ Verifying new suppliers and repeating the verification at least every 12 months
✅ Confirming the supplier’s identity, licence, authorised representatives and actual business premises
✅ Reviewing the commercial rationale, pricing, payment arrangements and origin of goods
✅ Completing additional checks for supplies exceeding or expected to exceed AED 375,000 within 12 months
✅ Making payments electronically—or documenting the commercial reason for paying in cash
✅ Maintaining a written supplier-verification policy and supporting evidence
There is a limited exemption for supplies below AED 10,000 excluding VAT, subject to the annual AED 100,000 supplier threshold and other conditions.
Failure to conduct the required checks may place input VAT recovery at risk where a transaction is connected with tax evasion and the conditions of Article 54 bis are met.
Try this quick self-check:
🔹 Do you verify every new supplier?
🔹 Is verification repeated at least once every 12 months?
🔹 Do you retain evidence of the checks?
🔹 Are high-value transactions subject to enhanced review?
🔹 Are cash payments properly documented?
How many boxes can your business tick?
Businesses should not wait until October. Now is the time to review supplier onboarding procedures, clean up supplier records and assign clear responsibility for annual verification.
Comment “CHECKLIST” if you would like to review your supplier-verification process.
For assistance in developing your VAT supplier-verification policy and compliance checklist, contact AlQaisar Chartered Accountants.
Landline: +971 4 264 5422
Whatsapp: +971 54 456 5410
