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Measures and Procedures for Verifying Supplies Before Input Tax Deduction
27/08/2026UAE VAT compliance is getting a little more interesting.
From 1 October 2026, FTA Decision No. 13 of 2026 introduces a stronger “Know Your Supplier, Know Your Supply” approach under Article 54(bis) of the VAT Law.
In simple terms - having a valid tax invoice may no longer be the end of the conversation. Businesses will need to look beyond the paperwork and consider the supplier’s identity, commercial substance and the circumstances surrounding the transaction when supporting input tax recovery.
A small change in approach, but potentially a significant change in how businesses manage supplier onboarding, procurement and Accounts Payable controls.
The message is clear: VAT recovery is no longer just about having the right invoice - it’s about being able to stand behind the transaction.
Read more to understand the new requirements and their practical implications.