FTA Decision No. 13 of 2026 | Effective 1 October 2026

The UAE Federal Tax Authority (FTA) has issued Decision No. 13 of 2026, prescribing the measures, procedures and conditions that Taxable Persons are required to undertake to verify the validity and integrity of supplies before deducting Input Tax.

The Decision introduces a structured verification framework covering suppliers and individual taxable supplies, together with documentation and governance requirements and specific thresholds for the application of certain measures.

Key Developments

• Supplier Verification

Taxable Persons are required to verify prescribed information relating to suppliers, including identity or incorporation, place of business and specified indicators relating to the supplier and its activities.

Verification is required when engaging with a supplier for the first time or where the supplier has not been verified during the preceding 12 months.

• Supply-level Verification

Each Taxable Supply received or accepted is subject to prescribed verification measures.

These include consideration of the commercial rationale, payment arrangements, pricing and profit margins, alignment with the supplier's licensed activities and, where applicable, the authenticity and origin of Goods.

• Enhanced Verification | AED 375,000

Additional measures apply where supplies received from a supplier exceed, or are expected to exceed, AED 375,000 over a 12-month period.

These measures include verification of the supplier's bank account and assessment of specified publicly available information.

• Threshold-based Exception

The verification measures may be disregarded for a Taxable Supply below AED 10,000, excluding VAT, subject to the conditions of the Decision.

The exception is not available where supplies from the relevant supplier exceed, or are expected to exceed, AED 100,000 during the relevant 12-month period.

• Documentation & Governance

Taxable Persons are required to document the verification steps undertaken and retain supporting records.

A documented policy must also identify responsibility for the implementation, review and supervision of the verification measures.

Potential Business Impact

The Decision introduces verification considerations that extend across the supplier lifecycle and individual transactions.

Businesses may therefore need to assess whether existing supplier onboarding, procurement, finance and Input Tax recovery processes capture and retain the information required under the Decision.

Actions To Consider

Ahead of 1 October 2026, businesses should consider:

• Assessing existing supplier due diligence against the prescribed verification measures;
• Reviewing transaction-level controls relevant to taxable supplies;
• Establishing mechanisms to monitor the AED 10,000, AED 100,000 and AED 375,000 thresholds;
• Reviewing the availability and retention of supporting documentation; and
• Formalising responsibility for implementation, review and supervision.
  
  

Source: UAE Federal Tax Authority — Decision No. 13 of 2026
Effective 1 October 2026