Federal Tax Authority (UAE tax)

Verify each supplier before the first supply, and again where an existing supplier has not been verified in the previous 12 months: for a natural person, a valid Emirates ID or passport and an in-person or virtual meeting; for a legal person, incorporation through official databases or its certificate of incorporation, and the identity of its authorised representative; and an actual place of business that fits the supplier's activity. Secondary source

FTA supplier and supply verification · Art. 3 (supplier verification) · Timing: Before the first supply; repeat when not verified in the previous 12 months

Assess each supplier's tax-evasion risk. Indicators include a place of business that does not exist or does not fit the activity, changes of address or key employees more than twice in 12 months, and transactions out of proportion to the supplier's size and history. Keep a justified explanation for any indicator found and give it to the FTA on request. Secondary source

FTA supplier and supply verification · Art. 3 (supplier verification) · Timing: Before the first supply

Where supplies from one supplier exceed, or are expected to exceed, AED 375,000 over 12 months, obtain written confirmation from a bank in the UAE that the supplier holds an account there, and review public information, reviews and media coverage for signs of tax evasion. Secondary source

FTA supplier and supply verification · Art. 3 (supplier verification) · Timing: Before the first supply above the threshold

Verify each taxable supply received or accepted: a genuine commercial reason; a commercially justifiable payment method and terms, with documented reasons for cash, third-party or overseas-account payments; prices and margins in line with the market; a supply within the supplier's licensed activity; the authenticity and origin of goods and the supplier's right to sell them; and a clear commercial reason for any intermediary. Secondary source

FTA supplier and supply verification · Art. 4 (supply verification) · Timing: Before deducting the input tax on that supply

The checks may be disregarded for a single supply below AED 10,000 excluding VAT, unless supplies from the same supplier exceed, or are expected to exceed, AED 100,000 over 12 months. Secondary source

FTA supplier and supply verification · Art. 6 (exceptions)

The FTA rejects an input tax deduction where the taxable person knew the supply was connected to tax evasion, and may reject it where the person should have known. A person that did not verify the validity and integrity of its suppliers and supplies before deducting is treated as having known. Secondary source

VAT Law · Art. 54 (bis), added by Federal Decree-Law 16/2025 · Timing: Before deducting input tax

Document every verification step and keep the supporting records for the FTA to inspect, and keep a written policy naming who implements, reviews and supervises the checks, with their powers and responsibilities.

FTA supplier and supply verification · Timing: From 1 October 2026

Excess recoverable input tax can be carried forward for five years from the end of the tax period in which it arose; after that the right to claim it expires. Secondary source

VAT Law · Art. 74(3), as amended · Timing: Within 5 years of the end of the tax period

The FTA may audit or assess within five years from the end of the tax period, with exceptions: for example, a refund claim filed in the fifth year allows an audit or assessment within two years of filing. Keep the evidence behind each return for at least that long. Secondary source

Tax Procedures Law · Art. 46, as amended · Timing: 5 years from the end of the tax period

Electronic invoicing documents must be stored within the UAE. Secondary source

Electronic invoicing system · MD 243/2025, Art. 11

Appoint an accredited e-invoicing service provider and go live on the national system by phase: annual revenue of AED 50 million or more, appoint by 31 July 2026 and go live on 1 January 2027; below AED 50 million, appoint by 31 March 2027 and go live on 1 July 2027; government entities, appoint by 31 March 2027 and go live on 1 October 2027. Secondary source

Electronic invoicing system · MD 244/2025 (timeline) · Timing: 1 January 2027 / 1 July 2027 / 1 October 2027 by phase

A refund of a credit balance must be requested within five years from the end of the relevant tax period; after that the right to the refund expires, with limited later windows where the balance arises from an FTA decision. Secondary source

Tax Procedures Law · Art. 38, as amended · Timing: Within 5 years of the end of the tax period

Failing to issue a tax invoice, tax credit note or alternative document within the legal period carries AED 2,500 per case. An incorrect tax return carries AED 500 for a first violation and AED 2,000 for a repeat, waived if corrected by the due date or through a voluntary disclosure that does not affect the tax due. Secondary source

Tax administrative penalties

Transactions and arrangements with related parties and connected persons must meet the arm's length standard, so a supplier that is related to the business or to its owners or staff needs its pricing evidenced. Secondary source

Corporate Tax Law · Art. 34-36