FTA Decision 13/2026 sets supplier verification rules for VAT input tax deduction

The Federal Tax Authority has issued Decision No. 13 of 2026, effective 1 October 2026, establishing mandatory measures, procedures and conditions for taxable persons to verify the validity and integrity of supplies before deducting input tax.

Taxable persons must now verify supplier identity (obtaining valid proof of identity and meeting suppliers in person or virtually), confirm the supplier's address and place of business through electronic means or field visits, and assess supplier risk indicators including frequent address changes, key employee turnover, and disproportionate transaction volumes.

For supplies exceeding AED 375,000 over a 12-month period, taxable persons must obtain written confirmation from an authorised bank that the supplier maintains a bank account and review publicly available information about the supplier.

Supply verification requirements include assessing the commercial genuineness of transactions, reviewing payment methods and conditions, verifying that prices align with market conditions, confirming supplies fall within the supplier's licensed activities, and authenticating the origin and ownership of goods. Where third parties are involved in payment or supplies are intermediated, taxable persons must document clear commercial explanations.