Is having a valid VAT invoice enough to claim Input VAT?
Not necessarily.
The Federal Tax Authority (FTA) Decision No. 13 of 2026 introduces measures, procedures and conditions that taxable persons must follow to verify the validity and integrity of supplies before deducting Input Tax.
Effective 1 October 2026, businesses will need to pay closer attention not only to the tax invoice, but also to the supplier and the underlying transaction.
🔎 What should businesses verify?
Depending on the circumstances, businesses may need to consider:
✔️ Supplier identity and business details
✔️ Trade license and VAT registration information
✔️ Supplier’s business address and activities
✔️ Whether the supplier is genuinely capable of providing the goods or services
✔️ Whether the goods or services were actually supplied
✔️ Commercial rationale and pricing of the transaction
✔️ Payment method and supporting payment evidence
✔️ Potential risk indicators associated with the supplier or transaction
⚠️ Watch the thresholds
The Decision introduces specific thresholds that businesses need to monitor, including:
AED 10,000 – Relevant exemption threshold for certain supplies, subject to the conditions under the Decision.
AED 100,000 – Cumulative supplier threshold that can affect the application of the exemption.
AED 375,000 – Threshold requiring enhanced supplier verification where the total value of supplies from a supplier exceeds, or is expected to exceed, this amount over the relevant 12-month period.
📁 Documentation matters
Performing the verification is only part of the process.
Businesses should maintain appropriate evidence and documentation demonstrating that the required checks were performed.
This may include supplier onboarding documents, licences, VAT information, contracts, purchase orders, delivery records, payment evidence, supplier verification records and other relevant supporting documents.
💡 What does this mean for your business?
VAT compliance is becoming increasingly focused on substance, due diligence and documentation.
A tax invoice may support an Input VAT claim, but businesses should also be able to demonstrate that the supplier is genuine, the transaction is legitimate, and reasonable verification procedures were performed.
👉 Don’t wait until a VAT audit to discover that your supplier due-diligence process is incomplete.
Start reviewing your supplier onboarding and Input VAT procedures before 1 October 2026.
Need help reviewing your VAT compliance procedures?
Leonard Dumlao & Associates can assist your business with VAT compliance, accounting and tax requirements in the UAE.
📞 +971 50 506 1908
📧 info@laafzllc.com
🌐 www.laafzllc.com