14/02/2026
🚨 UAE VAT UPDATE – KEY AMENDMENT ALERT 🇦🇪
The UAE has introduced a major VAT amendment under Federal Decree-Law No. 16 of 2025 that businesses in Dubai must not ignore.
🔎 What’s the Change?
The Federal Tax Authority (FTA) now has the power to deny input VAT recovery if a supply — or even a chain of supplies — is linked to a tax evasion scheme.
Previously, there was no specific Article 54 (bis) covering this area. This amendment strengthens anti-evasion controls and increases compliance responsibility for businesses.
🔑 What This Means for Your Company:
✔️ Conduct proper supplier due diligence
✔️ Verify VAT registration of vendors
✔️ Maintain complete documentation
✔️ Monitor supply chain compliance
✔️ Perform regular VAT health checks
⚠️ Even indirect involvement in a non-compliant supply chain can result in denied input VAT claims.
At NAK Auditing L.L.C – Dubai, we help businesses stay compliant, reduce risk, and safeguard VAT recovery.
📞 Contact us today for a VAT compliance review.
📍 Dubai, UAE