The UAE Federal Tax Authority (FTA) has introduced new Supplier & Supply Verification requirements that will impact how businesses claim Input VAT. The requirements take effect from 1 October 2026.
For CFOs, finance directors, and tax professionals, this means holding a valid tax invoice alone may no longer be enough. Businesses will need to demonstrate appropriate verification of both their suppliers and the underlying transactions.
🔹 Supplier Verification – Businesses must verify relevant supplier information and tax registration details.
🔹 Transaction Due Diligence – The legitimacy of the underlying supply must be assessed and appropriately documented.
🔹 Stronger Internal Controls – Procurement, accounting, ERP and VAT processes may need to be updated to capture verification and supporting evidence.
🔹 Greater Financial Exposure – Unsupported or disallowed Input VAT claims could create additional tax costs and cash-flow pressure.
FTA Decision No. 13 of 2026 signals an important evolution in UAE VAT compliance: from documentation-based compliance toward evidence-based due diligence.
Businesses should not wait until October to begin reviewing their processes. Supplier verification, procurement controls and VAT recovery should be treated as interconnected components of the organisation's broader tax governance framework.
Proactive preparation today can help reduce compliance risks tomorrow.
