14/02/2026
๐จ UAE VAT UPDATE โ KEY AMENDMENT ALERT ๐ฆ๐ช
The UAE has introduced a major VAT amendment under Federal Decree-Law No. 16 of 2025 that businesses in Dubai must not ignore.
๐ Whatโs the Change?
The Federal Tax Authority (FTA) now has the power to deny input VAT recovery if a supply โ or even a chain of supplies โ 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.
๐ What This Means for Your Company:
โ๏ธ Conduct proper supplier due diligence
โ๏ธ Verify VAT registration of vendors
โ๏ธ Maintain complete documentation
โ๏ธ Monitor supply chain compliance
โ๏ธ Perform regular VAT health checks
โ ๏ธ Even indirect involvement in a non-compliant supply chain can result in denied input VAT claims.
At NAK Auditing L.L.C โ Dubai, we help businesses stay compliant, reduce risk, and safeguard VAT recovery.
๐ Contact us today for a VAT compliance review.
๐ Dubai, UAE