26/08/2026
UAE VAT Compliance Update: New Input VAT Deduction Rules from 1 October 2026
New UAE VAT rules are changing how businesses claim input VAT in the UAE.
Under FTA Decision No. 13 of 2026, businesses claiming input tax must verify their suppliers and taxable supplies and maintain supporting records. A valid UAE tax invoice alone is no longer sufficient for the prescribed verification requirement.
For businesses managing VAT compliance in Dubai and the UAE, the important supplier verification checks include:
Supplier identity and business address
Licensed business activity
Transaction and supply authenticity
Payment method and commercial justification
Risk indicators and unusual transactions
Required supplier bank verification where the applicable threshold is reached
The new rules also introduce important UAE VAT supplier verification thresholds. Supplies below AED 10,000 have a limited exception, but this exception does not apply when supplies from the same supplier exceed AED 100,000 over the relevant 12-month period.
Businesses should review their VAT records, supplier due diligence, accounts payable controls and input VAT documentation before 1 October 2026.
Credora Consultancy LLC provides VAT consultancy in Dubai, UAE VAT compliance, VAT return filing, VAT registration, VAT accounting and supplier verification support for businesses across the UAE.
Call: +971 58 517 3186
https://credoraconsultancy.com/
