Before You Claim Input VAT: UAE Supplier Verification Rules From 1 October 2026
A valid tax invoice is no longer the only control businesses need to consider before recovering Input Tax. FTA Decision No. 13 of 2026 introduces defined checks on the supplier and the underlying transaction before Input Tax is deducted.
Taxable Persons within the scope of the Decision need evidence that prescribed supplier and supply checks were completed before Input Tax deduction. The rules also introduce important AED 10,000, AED 100,000 and AED 375,000 tests.
The New Question Is Not Only “Do We Have a Tax Invoice?”
The new control focuses on the substance behind the purchase. Businesses need to know who the supplier is, whether the supplier has a genuine business presence and whether the transaction makes commercial sense.
This changes the practical Input Tax review. Procurement and accounts payable information can now be relevant to the VAT position because supplier identity, payment arrangements, transaction value and commercial circumstances form part of the verification framework.
1. Verify the Supplier
Confirm the supplier’s identity or incorporation, authorised representative and actual place of business.
2. Verify the Transaction
Check the commercial reason, payment arrangement, pricing and whether the goods or services fit the supplier’s business.
3. Keep the Evidence
Document the checks performed and maintain a written policy assigning responsibility for the verification process.
Which Supplier Details Need Attention?
For an individual supplier, valid identification such as an Emirates ID or passport forms part of the verification. For a company, the incorporation information and the identity of the director, agent or authorised employee dealing on its behalf need to be established.
The business should also confirm that the supplier has an actual place of business compatible with the activities it carries out.
- The supplier changed its address more than twice during the previous 12 months.
- Managers or other key employees changed more than twice during the previous 12 months.
- Transactions appear disproportionate or unexpected compared with the supplier’s size or business history.
The Three VAT Supplier Thresholds Businesses Should Separate
The AED 10,000, AED 100,000 and AED 375,000 amounts do different jobs. Treating them as one general threshold can lead to the wrong conclusion.
| Amount | What It Means |
|---|---|
| AED 10,000 | A taxable supply below AED 10,000 excluding VAT can fall within the small-value exception, subject to the cumulative supplier test. |
| AED 100,000 | The AED 10,000 exception stops applying when total supplies from the same supplier exceed, or are expected to exceed, AED 100,000 over the relevant 12-month period. |
| AED 375,000 | Higher-value supplier relationships trigger additional bank-account confirmation and review requirements. |
What Needs to Be Checked on the Actual Supply?
A verified supplier does not automatically mean every purchase from that supplier is verified. Each taxable supply needs its own commercial review.
- Is there a genuine commercial reason for the supplier’s involvement?
- Are the payment method and payment conditions commercially reasonable?
- Can a third-party payment or foreign-bank payment be properly explained?
- Are the price and margin commercially justifiable?
- Does the supply fit the supplier’s licensed activities?
- Can the authenticity, origin and ownership of goods be established when relevant?
- If the supplier acts as an intermediary, is there a clear commercial reason for that role?
When Does a Supplier Need to Be Checked Again?
Supplier verification is required when dealing with a supplier for the first time. For an existing supplier, the verification needs to be repeated when that supplier has not been verified during the previous 12 months.
This means businesses need more than a one-time onboarding file. The finance or procurement process should record when each relevant supplier was verified and monitor supplier values and changes over time.
What Should Finance and Procurement Change Before 1 October?
Why This Is Different From Normal Vendor Onboarding
Many businesses already collect a trade licence, VAT certificate and bank details when creating a supplier. FTA Decision No. 13 of 2026 goes further because it connects supplier due diligence directly with the conditions surrounding Input Tax recovery.
The stronger process combines vendor onboarding with transaction-level controls. It also creates evidence showing what was reviewed, when it was reviewed and who approved the verification.
Review Your Input VAT Supplier Controls Before 1 October 2026
Credora Consultancy LLC can review your supplier onboarding, accounts-payable controls and Input Tax procedures against FTA Decision No. 13 of 2026. The review can identify higher-value suppliers, verification gaps and the internal controls that need to be documented before the new requirements take effect.
For broader VAT registration, filing and compliance requirements, visit our VAT Services in Dubai & UAE.
Request a Supplier Verification Review