18/09/2026
The UAE has amended its Value Added Tax (VAT) Executive Regulations, introducing new restrictions on Input Tax recovery for large cash payments in a move aimed at strengthening compliance and reducing the risk of tax evasion.
What's changing: Input Tax can no longer be recovered on large cash payments above thresholds still to be announced. In addition, the update brings several technical revisions: updated rules for medical product supply and import (aligned with new healthcare legislation), clearer guidance on employee accommodation for input tax recovery, revised application of the Capital Assets Scheme, a refined input tax apportionment methodology and new provisions on how composite supplies are treated for VAT purposes.
Why it matters: If your business relies on cash payments to suppliers or staff, your Input Tax recovery position could be affected once the thresholds land. This is a clear signal that scrutiny on how transactions are structured is only increasing, with penalties for those businesses that fail to comply.
With regulations evolving, remaining compliant has never mattered more. Reach out to Legends Accounting to understand exactly how these changes apply to you, before it's too late!
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