Since 1 October 2026, a valid tax invoice is no longer enough to recover input VAT in the UAE. FTA Decision No. 13 of 2026 now requires every taxable person to verify, and document, both the supplier and the supply before deducting input tax.
Why this matters
Check the exception carefully: the low-value rule for a supply below AED 10,000 does not apply when supplies from the same supplier exceed, or are expected to exceed, AED 100,000 over the relevant 12-month period.
The Decision gives effect to Article 54(bis) of the VAT Law. The FTA can deny input tax where a supply is linked to tax evasion and the buyer knew, or should have known. Failing to carry out the prescribed checks can itself be treated as "should have known". In practice, missing paperwork can turn recoverable VAT into a straight cost.
What you must check on the supplier
- Identity: trade licence and incorporation details for a company, with an identified authorised representative; Emirates ID or passport for an individual.
- Place of business: that the supplier actually operates from its stated premises.
- Licensed activity: the goods or services fall within what the supplier is licensed to do.
- Re-verification: a supplier not checked in the past 12 months must be verified again.
Extra checks for larger suppliers
Where purchases from one supplier exceed, or are expected to exceed, AED 375,000 in 12 months, you also need a UAE bank's confirmation that the supplier holds an account, plus a review of reliable public information about the supplier.
What you must check on each supply
- A genuine commercial reason for the transaction.
- Pricing and margins in line with the market.
- Payment made electronically to the supplier's own account; cash or third-party payments need a documented reason.
- Where relevant, the authenticity, origin and ownership of the goods.
Some low-value supplies under AED 10,000 (excluding VAT) may be excepted, subject to conditions in the Decision.
What to do now
- Update your supplier onboarding form to capture the required documents.
- Flag every supplier above AED 375,000 a year for enhanced checks.
- Keep a verification file per supplier, ready for an FTA audit.
- Re-verify existing suppliers on a 12-month cycle.
How Growbox Auditing can help: We can review selected supplier-verification records and identify policy and documentation gaps within an agreed scope. Contact our team for a supplier verification review.
This article is general information, not tax advice for your specific situation.