FTA Decision No. 13 of 2026: New UAE VAT Input Tax Verification Rules Explained

The UAE Federal Tax Authority (FTA) has introduced an important new VAT compliance requirement that businesses should prepare for before 1 October 2026.

FTA Decision No. 13 of 2026 establishes the measures, procedures and conditions that taxable persons must follow when verifying the validity and integrity of supplies before deducting input tax. The FTA issued the Decision on 22 July 2026, published it on 20 August 2026, and it comes into effect on 1 October 2026.

In practical terms, UAE businesses will need to look beyond simply receiving a tax invoice. They will need to perform and document the supplier and supply verification measures prescribed by the Decision, subject to the applicable exceptions.

The FTA Decision specifically requires businesses to verify aspects such as the supplier’s identity, business presence, risk indicators and, for higher-value supplier relationships, banking information and publicly available information. Businesses must also assess the commercial nature of the supply, payment arrangements, pricing, licensed activities and, where applicable, the authenticity and ownership of goods.

For UAE companies, this makes supplier due diligence and transaction-level supply verification increasingly important parts of VAT compliance and input tax recovery.

What Is FTA Decision No. 13 of 2026?

FTA Decision No. 13 of 2026 sets out the measures that a taxable person must take to verify the validity and integrity of supplies received before deducting input tax.

The decision applies to taxable persons verifying supplies they receive before claiming input VAT. It is issued for the purposes of applying Article 54(bis) of the VAT Law.

Key dates

The official FTA legislation portal confirms the decision’s issue and publication dates.

What does this mean for businesses?

Businesses should be prepared to demonstrate that they have carried out appropriate checks before deducting input VAT on affected supplies.

This includes two broad areas:

1. Supplier verification
2. Supply or transaction verification

These are separate concepts under the Decision. Supplier verification is dealt with principally under Article 3, while verification of the actual supply is dealt with under Article 4. Businesses therefore need to consider both the supplier and the individual taxable supply, subject to the exceptions in Article 6.

It also introduces specific thresholds that businesses need to monitor.

Why Is This UAE VAT Update Important?

Many businesses traditionally focus on whether:

• The supplier issued a valid tax invoice
• The supplier has a VAT registration number
• VAT was charged correctly
• The purchase relates to business activities
• Payment was made

These remain important VAT controls.

However, Decision No. 13 introduces a wider verification framework.

A business may now need to consider questions such as:

• Who is the supplier?
• Does the supplier actually operate from the stated location?
• Is the supplier’s business activity consistent with the goods or services being supplied?
• Does the transaction make genuine commercial sense?
• Are the payment arrangements commercially reasonable?
• Is the price significantly different from market conditions?
• Are there any warning signs associated with the supplier?
• Can the business demonstrate that these checks were performed?

This makes supplier onboarding, procurement, accounts payable and tax compliance more closely connected.

The key point is that the Decision does not simply require checking whether a supplier has a valid TRN. It establishes specific measures for verifying the supplier and the supply, together with documentation and internal responsibility requirements.

Supplier Verification Under FTA Decision No. 13

Article 3 requires a taxable person to verify the identity of its supplier.

The exact process depends on whether the supplier is a natural person or a legal person.

1. Verification of an Individual Supplier

Where the supplier is a natural person, the taxable person must:

• Obtain valid proof of identity
• This may include an Emirates ID or passport
• Meet the supplier either physically or virtually before making the supply

This is particularly relevant for businesses that regularly engage freelancers, consultants, individual service providers or other natural-person suppliers.

Practical example

A UAE company hires an individual consultant for a major project.

Instead of simply keeping the consultant’s invoice, the company should consider maintaining evidence of the required identity verification and the meeting conducted before the supply.

The objective is to establish that the supplier is a genuine and identifiable person.

2. Verification of a Company or Legal-Person Supplier

For a legal-person supplier, the taxable person must verify the supplier’s incorporation.

This can involve:

• Checking official databases; or
• Obtaining incorporation documentation

The incorporation details should correspond with relevant information such as the supplier’s:

• Legal name
• Address
• Employees
• Other related information

The identity of the director, agent or employee authorised to represent the supplier must also be verified using valid identification.

Practical example

A Dubai company is onboarding a new overseas-owned UAE supplier.

Before making significant purchases, the company could establish a supplier file containing the relevant incorporation information, license details, authorised representative information, and other supporting evidence required under its verification policy.

The Decision does not prescribe a particular “supplier file” format. This is a practical approach businesses can use to demonstrate that the required verification procedures have been performed and documented.

Verify the Supplier’s Actual Business Location

Decision No. 13 goes beyond checking whether an address appears on a document.

The taxable person must verify the existence of an actual place of business.

This can be done through:

• Appropriate electronic means; or
• A field visit

The business should also assess whether the supplier’s location is compatible with the nature of its activities.

Example

Suppose a supplier claims to provide large-scale industrial equipment worth millions of dirhams. Still, the available information suggests that it operates from a location that appears inconsistent with the nature and scale of its business.

That inconsistency should not simply be ignored.

The company should investigate the situation and document the commercial explanation or evidence supporting the supplier relationship.

Importantly, the Decision does not require a physical site visit for every supplier. Verification may be performed through appropriate electronic means or through a field visit.

Three Supplier Risk Indicators Businesses Need to Watch

FTA Decision No. 13 identifies three specific risk indicators.

1. Frequent Address Changes

A supplier that has changed its address more than twice during the previous 12 months represents a specified risk indicator.

2. Frequent Changes in Key Employees

A supplier that has changed key employees or managers, including people with whom the taxable person deals, more than twice during the previous 12 months is another specified indicator.

3. Unusual or Disproportionate Transactions

A supplier undertaking transactions that appear disproportionate or unexpected based on:

• Volume
• Value
• Nature of transactions
• Business size
• Previous business history

is another risk indicator.

Important: A risk indicator does not automatically mean fraud

This is an important point for UAE businesses.

If one of these indicators applies, the Decision requires the taxable person to retain a clear and justified explanation and provide it to the FTA upon request.

The explanation should also not contradict the evidence or information available to the taxable person.

Therefore, a risk indicator should prompt investigation and documentation, not an automatic conclusion that the supplier is fraudulent.

AED 375,000 Threshold: Enhanced Supplier Verification

One of the most important provisions concerns suppliers from whom the business receives significant volumes of supplies.

Where supplies received from a supplier:

• Exceed AED 375,000 during the previous 12 months, or
• Are expected to exceed AED 375,000 during the next 12 months,

Additional verification requirements apply.

The business must verify that the supplier has a bank account and review client recommendations where available.

It must also obtain written confirmation from an authorised bank in the UAE confirming that the supplier has a bank account, subject to the conditions specified in the decision.

An important practical point is that the bank confirmation is obtained from the supplier, and the Decision specifically states that the confirmation does not need to be issued to the recipient of the supply.

In addition, publicly available reviews and media coverage from reliable sources should be reviewed and assessed for consistency with the supplier’s nature and size and for indicators of suspected tax evasion.

Practical example

Imagine a UAE manufacturing company purchases:

AED 450,000 of raw materials from Supplier A over 12 months.

Because the value exceeds AED 375,000, the company should apply the enhanced supplier verification requirements.

Its supplier file should therefore reflect the relevant bank-account confirmation and the required public-source review.

The AED 10,000 Exception

Decision No. 13 provides an important exception.

A taxable person may disregard the specified verification measures for a taxable supply where the consideration excluding VAT is less than AED 10,000.

However, businesses should not interpret this as meaning that every invoice below AED 10,000 is automatically outside the requirements.

There is an important supplier-level condition.

The AED 100,000 Supplier Threshold

The AED 10,000 exception does not apply where the total value of supplies received from that supplier:

• Exceeded AED 100,000 during the previous 12 months, or
• Is expected to exceed AED 100,000 during the next 12 months.

This makes supplier-level spend monitoring extremely important.

Example

Company ABC receives the following invoices from Supplier X:

Although several individual invoices are below AED 10,000, the relationship with the supplier has exceeded AED 100,000.

Therefore, the business should not rely on the AED 10,000 exception simply because individual invoices may fall below that amount.

The important distinction is that AED 10,000 relates to the consideration for the individual taxable supply, while AED 100,000 is an aggregate supplier-level threshold.

The Three Numbers Every UAE Business Should Remember

The new framework can be simplified into three important thresholds:

These should be incorporated into the company’s supplier monitoring and accounting processes.

In simple terms: AED 10,000 is the individual-supply exception threshold, AED 100,000 determines whether that exception remains available at supplier level, and AED 375,000 triggers additional supplier verification requirements.

How the Three Thresholds Work Together

The thresholds should not be viewed in isolation.

For example:

1. A taxable supply is below AED 10,000 excluding VAT

The supply may qualify for the verification exception.

2. However, if total supplies received from that supplier exceed AED 100,000 over the relevant 12-month period

The AED 10,000 exception no longer applies.

3. If total supplies received from that supplier exceed AED 375,000 over the relevant 12-month period

Additional supplier verification requirements apply, including bank-account verification and review of publicly available reviews and media coverage.

This means businesses should monitor supplier-level spending over rolling 12-month periods rather than relying only on individual invoice values.

Verification of the Actual Supply

Supplier verification is only one side of the new requirements.

Article 4 also requires verification of the supply itself.

Businesses should assess whether the transaction has genuine commercial substance.

1. Does the transaction have a genuine commercial purpose?

The taxpayer should assess the supply and ensure the supplier’s involvement is based on genuine commercial reasons.

Example

A company cannot clearly explain why a newly introduced intermediary is involved in a transaction, especially when the intermediary charges a significant fee.

That arrangement should be reviewed and the commercial rationale documented.

2. Review Payment Arrangements

The payment method and conditions should be commercially justifiable.

Additional attention is required where:

• A third party participates in the payment process; or
• Payment is made to a bank account outside the supplier’s country of incorporation.

There should be a reasonable commercial explanation for such arrangements. That explanation should not contradict information or evidence available to the taxable person.

The decision also provides that consideration should be paid electronically.

Where cash is used, there must be:

• A documented commercial reason
• Compliance with applicable tax legislation
• A payment that can be readily verified

Example

Supplier ABC issues an invoice to a UAE company, but the company is asked to transfer the money to an unrelated third-party account.

This should not be treated as an ordinary payment instruction without investigation.

The company should obtain and retain a reasonable commercial explanation and relevant supporting evidence.

The Decision does not automatically prohibit cash payments. However, where cash is used, the specific conditions stated in the Decision must be satisfied.

3. Review Pricing and Profit Margins

The taxpayer must verify that the price or profit margin is not commercially unjustifiable or significantly different from market conditions without a clear reason.

Example

A company normally purchases a particular service for around AED 50,000.

A new supplier charges AED 200,000 for a seemingly comparable service.

That difference does not automatically mean the expense is invalid.

However, the business should be able to explain the difference—for example:

• Higher scope
• Better specifications
• Urgent delivery
• Additional services
• Different commercial terms
• Market shortage

These are examples of possible commercial explanations, not specific explanations prescribed by the FTA. Support any explanation with appropriate evidence where available.

4. Check the Supplier’s Licensed Activity

The business must verify that the goods or services supplied do not fall outside:

• The supplier’s ordinary business activity; or
• The activities the supplier is licensed to conduct.

Example

A company licensed for IT consultancy suddenly invoices a customer for a major construction project.

That mismatch should trigger further review.

5. Verify Goods, Origin and Ownership

For goods, the taxpayer must verify:

• Authenticity
• Origin
• Supplier ownership; or
• The supplier’s legal right to dispose of the goods

This is particularly relevant for businesses involved in trading, wholesale, electronics, automotive products, luxury goods, commodities and other high-value goods.

6. Intermediary Arrangements Need an Explanation

Where a supplier acts as an intermediary, the business should verify that there is a clear and justifiable commercial explanation for the intermediary’s role.

Businesses with complex supply chains should therefore pay particular attention to intermediary arrangements.

Documentation Is One of the Biggest Changes

Perhaps the most important practical requirement is that businesses must document their verification process.

Article 5 requires businesses to:

• Verify suppliers when dealing with them for the first time
• Re-verify suppliers where they have not been verified during the previous 12 months
• Verify each taxable supply as required
• Document the verification steps
• Retain supporting records
• Maintain a documented verification policy

This means businesses should be able to answer:

• Who performed the check?
• When was it performed?
• What was checked?
• What documents were reviewed?
• Were any risks identified?
• What explanation was obtained?
• Who approved the conclusion?

The objective is not simply to perform a check, but to maintain sufficient evidence to enable the FTA to verify that the Decision’s requirements were correctly implemented.

A Written VAT Verification Policy Is Required

The decision specifically requires a documented policy identifying the people responsible for:

• Implementing verification procedures
• Reviewing verification
• Supervising verification
• Exercising relevant powers and responsibilities

For this reason, UAE businesses should consider developing a formal Supplier and Supply Verification Policy before the effective date.

The Decision does not prescribe a specific title or template for this policy. Businesses may therefore formalise it internally as a Supplier and Supply Verification Policy or another appropriate documented VAT verification policy, provided that it clearly identifies the responsible persons, their powers and their responsibilities.

How UAE Businesses Can Prepare for 1 October 2026

Businesses should not wait until October to begin preparing.

Here is a practical implementation plan for businesses based on Decision No. 13. They are not a prescribed eight-step process in the FTA Decision itself.

Step 1: Review Your Supplier Database

Identify all active suppliers and check:

• Legal name
• Trade licence information
• VAT/TRN details
• Address
• Business activity
• Authorised representative
• Bank details

Step 2: Calculate Supplier Spend

Use a rolling 12-month report to identify suppliers crossing:

• AED 100,000
• AED 375,000

Do not rely only on individual invoice values.

Businesses should also review their supplier master data to ensure the same supplier has not been recorded under multiple vendor accounts, as this could distort supplier-level threshold calculations.

Step 3: Identify High-Risk Suppliers

Review suppliers for:

• Multiple address changes
• Frequent key-person changes
• Unusual transaction volumes
• Unexpected transaction values
• Activity/licence mismatches
• Unusual payment arrangements

Step 4: Strengthen Supplier Onboarding

Create a standard verification process for new suppliers.

Step 5: Introduce Transaction-Level Checks

Before input VAT is claimed, establish controls for:

• Commercial rationale
• Payment method
• Pricing
• Licensed activity
• Goods authenticity and origin
• Ownership
• Intermediary arrangements

Step 6: Maintain Evidence

Store supporting documentation in a central and easily retrievable location.

Step 7: Establish Responsibility

Clearly define who:

• Performs the verification
• Reviews it
• Approves exceptions
• Maintains documentation

Step 8: Train Finance and Procurement Teams

The new requirements should not sit exclusively with the tax department.

Procurement, finance, accounts payable and management should understand the new controls.

Practical Example: How the New Rules Could Work

Consider a UAE trading company purchasing products from Supplier ABC.

Supplier relationship

Annual purchases:

AED 550,000

This exceeds the AED 375,000 threshold.

Supplier verification

The company verifies:

• Supplier incorporation
• Authorised representative
• Actual business location
• Business activity
• Risk indicators
• UAE bank account
• Publicly available information

Transaction verification

For each applicable supply, the company assesses:

• Commercial purpose
• Pricing
• Payment terms
• Supplier’s licensed activity
• Product origin
• Product authenticity
• Supplier ownership

Documentation

The company retains:

• Supplier verification records
• Supporting documents
• Risk assessment
• Bank confirmation
• Relevant public-source review
• Transaction verification evidence
• Internal approval

This creates a defensible audit trail.

The exact evidence required will depend on the circumstances of the supplier and supply. The Decision requires businesses to document the verification steps and retain supporting documents and records sufficient to enable the FTA to verify implementation.

Does a Valid Tax Invoice Alone Protect Input VAT?

A valid tax invoice remains an important VAT requirement, but businesses should not assume an invoice alone meets all the verification requirements introduced by Decision No. 13.

The new decision specifically requires verification of the supplier and the supply.

The Decision is issued to apply Article 54(bis) of the VAT Law. It establishes the prescribed measures, procedures, and conditions for verifying the validity and integrity of supplies before deducting input tax.

Therefore, businesses should think beyond:

Invoice → Accounting entry → VAT claim

and move toward:

Supplier due diligence → Transaction verification → Evidence → VAT claim

A valid tax invoice should therefore be viewed as one part of the broader VAT compliance process rather than as a substitute for the verification measures prescribed by Decision No. 13.

Is This Only Relevant to Large UAE Companies?

No, the decision applies to taxable persons within its scope.

However, the thresholds provide proportionality for smaller transactions.

An SME with relatively few suppliers may be able to manage the process through a simple documented checklist and supplier file.

A large enterprise with thousands of suppliers may need:

• ERP controls
• Automated supplier-spend tracking
• Risk scoring
• Approval workflows
• Supplier master-data controls
• Digital document management
• Periodic compliance reviews

The right approach depends on the business’s size and complexity.

The Decision applies to taxable persons within its scope, not only large businesses. However, the scale and sophistication of internal controls can be adapted to the business’s size and complexity.

Why Supplier Master Data Is Now More Important

One practical challenge businesses may overlook is the quality of their supplier records.

If the same supplier appears under multiple vendor accounts, the business may struggle to accurately determine whether the AED 100,000 or AED 375,000 thresholds have been crossed.

For example:

ABC Trading LLC

and

ABC Trading L.L.C.

could accidentally exist as separate supplier records.

This can distort supplier-level spend calculations.

Businesses should therefore consider cleaning their vendor master data before implementing the new controls.

While supplier master-data cleansing is not expressly prescribed as a separate requirement in Decision No. 13, it is a practical control that can help businesses apply the supplier-level thresholds correctly.

Recommended Supplier Verification Checklist

Businesses can use the following as a starting point when designing their internal process:

• Supplier identity verified
• Incorporation/licence information checked
• Authorised representative verified
• Business address verified
• Actual place of business assessed
• Business activity reviewed
• Risk indicators assessed
• Supplier spend threshold checked
• Bank verification completed where applicable
• Public information reviewed where applicable
• Commercial purpose assessed
• Payment method reviewed
• Pricing assessed
• Goods/services checked against licensed activity
• Goods origin/authenticity/ownership verified where applicable
• Intermediary role assessed where applicable
• Supporting documents retained
• Verification approval documented

Adapt this checklist to the company’s actual operations and formalise it through its internal VAT verification policy.

This is a recommended practical checklist based on the measures and conditions contained in FTA Decision No. 13 of 2026. It is not an FTA-prescribed checklist or mandatory template. Businesses should adapt the checklist to their own operations and circumstances.

Common Mistakes UAE Businesses Should Avoid

Mistake 1: Checking only the VAT number

A valid VAT registration does not replace the broader verification process.

Mistake 2: Looking at invoices individually

The AED 100,000 and AED 375,000 provisions require businesses to monitor supplier relationships over 12-month periods.

Mistake 3: Ignoring unusual transactions

Unexpected transaction values or volumes are specifically identified as risk indicators.

Mistake 4: Paying third parties without documentation

Third-party payment arrangements should have a reasonable commercial explanation.

Mistake 5: Ignoring licence mismatches

The supplier’s goods or services should be consistent with its ordinary or licensed activities.

Mistake 6: Performing checks but keeping no evidence

If the business cannot demonstrate what it checked, when it checked it and what evidence it relied upon, the compliance process becomes difficult to defend.

Mistake 7: Leaving everything to the accountant

Procurement and accounts payable often have the information needed to perform the initial checks. The process should therefore involve the appropriate teams.

Final Takeaway

FTA Decision No. 13 of 2026 represents a significant development in the UAE VAT compliance framework.

The key change is that businesses should no longer think of input VAT recovery simply as:

Tax Invoice → Accounting Entry → VAT Claim

Instead, businesses should be prepared to demonstrate:

Supplier Verification → Supply Verification → Documentation → Input VAT Claim

The three thresholds businesses should remember are:

AED 10,000

Potential exception for a taxable supply where consideration excluding VAT is below this amount.

AED 100,000

Supplier-level threshold that can remove the AED 10,000 exception.

AED 375,000

Supplier-level threshold triggering additional verification requirements, including bank-account verification and public-source review.

The Decision also places significant importance on documenting the verification process and maintaining a clear internal policy defining responsibilities.

Businesses should therefore use the period before 1 October 2026 to review their supplier onboarding, procurement, accounts payable, accounting and VAT processes and determine how the new verification requirements can be incorporated into their existing controls.

The FTA has officially published Decision No. 13 of 2026 on its legislation portal, and the Decision takes effect from 1 October 2026.

For UAE businesses, the practical message is simple: do not wait until an FTA review or VAT audit to demonstrate that your suppliers and purchases were genuine. Build the verification process, document it and make it part of your normal VAT compliance controls from 1 October 2026.

How German FinTax Consultancy Can Help You

FTA Decision No. 13 of 2026 introduces new verification, documentation and internal control requirements that can affect procurement, accounts payable, supplier onboarding, accounting and VAT compliance processes.

At German FinTax Consultancy FZE LLC (GFTC), we can help UAE businesses assess their current processes and prepare for the new requirements before the Decision becomes effective on 1 October 2026.

Our VAT Verification Support Can Include:

1. Supplier Verification Review

We can review your existing supplier onboarding process and help establish appropriate procedures for:

• Individual and legal-person supplier verification
• Trade licence and incorporation checks
• Authorised representative verification
• Actual business address verification
• Supplier risk indicators
• Supplier bank-account verification where applicable
• Public-source and reputation checks for higher-value suppliers

2. Supplier Threshold Analysis

We can analyse your supplier data and identify suppliers approaching or exceeding:

• AED 100,000
• AED 375,000

This helps ensure the appropriate verification requirements are applied at the supplier level.

3. Supply and Transaction Verification Framework

We can help businesses establish a practical process for reviewing:

• Commercial purpose
• Payment arrangements
• Third-party payments
• Overseas bank-account payments
• Pricing and profit margins
• Supplier’s licensed activities
• Goods authenticity and origin
• Ownership or right to dispose of goods
• Intermediary arrangements

4. VAT Verification Policy

We can assist in preparing a documented VAT Verification Policy setting out:

• Verification procedures
• Responsible personnel
• Review and approval responsibilities
• Escalation procedures
• Documentation requirements
• Periodic supplier re-verification
• Record-retention procedures

5. Supplier Master Data Review

We can review your supplier master data to identify duplicate supplier records, inconsistent legal names and other issues that could affect the calculation of supplier-level thresholds.

6. Documentation and Audit Trail

We can help establish a structured documentation process so that your business can demonstrate:

• What was verified
• When it was verified
• Who performed the verification
• What supporting documents were reviewed
• What risks were identified
• How exceptions were addressed
• Who approved the verification

7. Finance and Procurement Process Review

Because these requirements extend beyond the tax department, we can review how your procurement, finance, accounts payable, and VAT teams currently operate and identify where additional controls may be required.

8. Staff Training and Implementation Support

We can provide practical guidance to relevant employees so the new verification procedures become part of the normal purchasing and VAT process, rather than an additional step performed only when an audit occurs.

Prepare Before 1 October 2026

The best time to implement these controls is before the effective date, not after a VAT review begins.

GFTC can help your business move from:

Supplier → Invoice → Payment → VAT Claim

to a documented process of:

Supplier Verification → Supply Verification → Documentation → Approval → VAT Claim

If your business has a large supplier base, frequent high-value purchases, overseas suppliers, intermediaries or complex payment arrangements, now is a good time to assess how Decision No. 13 of 2026 will affect your existing VAT processes.

Contact German FinTax Consultancy FZE LLC (GFTC) to discuss a VAT Verification Readiness Review and prepare your business for the new requirements.

FTA Decision No. 13 of 2026: Frequently Asked Questions

1. What is FTA Decision No. 13 of 2026?

FTA Decision No. 13 of 2026 establishes measures, procedures and conditions for taxable persons to verify the validity and integrity of supplies before deducting input VAT.

2. When does FTA Decision No. 13 of 2026 come into effect?

The decision comes into effect on 1 October 2026.

3. Who is affected by the new UAE VAT verification rules?

The decision applies to taxable persons verifying supplies received before deducting input tax.

4. What supplier information must a UAE business verify?

Depending on the circumstances, businesses must verify supplier identity, incorporation, authorised representatives, business address, actual place of business, and specified risk indicators.

5. What is the AED 10,000 threshold?

A taxable person may disregard the prescribed verification measures for a taxable supply where the consideration excluding VAT is less than AED 10,000, subject to the AED 100,000 supplier-level condition.

6. What happens if purchases from one supplier exceed AED 100,000?

The AED 10,000 exception does not apply where the total value of supplies received from that supplier exceeds AED 100,000 over the previous 12 months or is expected to exceed AED 100,000 over the next 12 months.

7. What happens when supplier purchases exceed AED 375,000?

Additional supplier verification requirements apply, including verification of the supplier’s bank account and review of publicly available reviews and media coverage from reliable sources.

The Decision also requires written confirmation issued by an authorised bank in the UAE confirming that the supplier has a bank account. The Decision states that this confirmation does not need to be issued to the recipient of the supply.

8. Does the business need to verify the supplier every year?

Supplier verification is required when dealing with a supplier for the first time, or for recurring dealings where the supplier has not been verified in the previous 12 months.

9. Does every invoice require a separate verification?

The Decision refers to verifying each taxable supply rather than each invoice. Article 5 requires the taxable person to verify each taxable supply received or accepted in accordance with Article 4, subject to the stated exception.

Businesses should therefore establish a process that enables supply-level verification where required.

10. What if a supplier changes its address frequently?

More than two address changes during the previous 12 months is one of the specified risk indicators. The taxpayer should retain a clear, justified explanation where this indicator applies. The explanation should not contradict evidence or information available to the taxable person.

11. Does the FTA require a physical visit to every supplier?

No, the decision allows verification of the actual place of business through appropriate electronic means or a field visit. Therefore, it does not require a physical site visit for every supplier.

12. Is cash payment prohibited?

No, the decision states that consideration should be paid electronically. Where payment is made in cash, it must have a documented commercial reason, comply with applicable tax legislation and be easily verifiable.

13. What should businesses do if the supplier’s activity does not match its invoice?

The business should investigate the mismatch because the decision requires verification that supplies do not fall outside the supplier’s ordinary or licensed activities. Businesses should retain supporting evidence and a documented conclusion.

14. Does a valid tax invoice automatically guarantee input VAT recovery?

Businesses should not rely on the tax invoice alone. Decision No. 13 establishes additional verification measures relating to the supplier and the supply before input tax deduction.

15. Do businesses need a written supplier verification policy?

Yes. Article 5 requires a documented policy identifying the persons responsible for implementing, reviewing and supervising the verification procedures and their responsibilities.

The Decision does not prescribe a specific policy title or template. Businesses should maintain a documented policy that clearly covers the responsibilities required by Article 5.

16. What should UAE businesses do before 1 October 2026?

Businesses should review their supplier database, identify suppliers crossing the AED 100,000 and AED 375,000 thresholds, strengthen supplier due diligence, establish transaction-level checks, document verification procedures and train relevant employees.

Businesses should also review their supplier master data, establish clear responsibility for verification, and ensure their evidence and documentation processes can demonstrate compliance with the Decision.