30/09/2026
1 October 2026: A Key Date for UAE VAT
The UAE VAT landscape is changing. From 1 October 2026, taxable persons seeking to recover Input VAT must comply with the new verification of supplies requirements introduced under Article 54(bis) of the UAE VAT Law and FTA Decision No. 13 of 2026.
In addition to holding a valid tax invoice and ensuring the expense relates to taxable supplies, businesses will now be required to verify both the supplier and the genuineness of the supply in specified circumstances.
When is verification required?
* Where the value of a supply exceeds AED 10,000
* Where individual supplies are below AED 10,000, but cumulative purchases from the same supplier exceed AED 100,000 within a 12-month period
What should be verified? Identity of the supplier
* Supplier's place of business
* Payment and commercial arrangements
* Red flags such as frequent changes in premises, unusual business practices, or reputation risks
When should verification be performed?
* At supplier onboarding or first qualifying supply
* At least once every 12 months thereafter
Why is this important? Failure to comply may result in the FTA denying Input VAT recovery on the relevant supplies.
Action required now
✔️ Conduct supplier verification procedures
✔️ Maintain supporting evidence and declarations
✔️ Implement and document a robust VAT compliance policy
✔️ Review existing VAT controls to ensure readiness before 1 October 2026
Are your VAT controls ready for the new verification requirements? Now is the time to assess your processes and strengthen your compliance framework.