Input VAT UAE: 7 Supplier Checks to Complete Before You Claim

The decision is issued under Article 54(bis) of the UAE VAT Law. That article allows the Federal Tax Authority (FTA) to deny input tax where a supply is linked to tax evasion and the business knew, or should have known, about the link. 

Decision No. 13 sets out what checking looks like in practice. It is not about doubting every vendor. It is about being able to show that you knew who you were dealing with and that the purchase made commercial sense. 

Before you deal with a supplier for the first time, and again if they have not been verified in the previous 12 months, confirm their identity. 

For a company, that means the trade license and certificate of incorporation, checked through official databases, along with the Emirates ID or passport of the authorized representative. For an individual or sole establishment, you need the trade license and the owner's Emirates ID or passport, plus a meeting with the supplier, in person or virtual, before the supply. 

The important point for founders: do this at onboarding, not when the invoice arrives. 

 The supplier should have an actual place of business that suits its activity. This can be confirmed electronically or through a site visit. Whichever route you use, note how you confirmed it. 

 Look for more than two address changes or more than two key-staff changes in 12 months, or transactions that seem out of proportion to the supplier's size. 

If you find any of these, keep a written explanation of how you assessed it. 

 Where a supplier is, or is expected to be, above AED 375,000 over the past or next 12 months, two more checks apply. 

The first is written confirmation from a UAE bank of the supplier's account. The second is a review of publicly available reviews and media, to confirm the supplier's size and activity are consistent and that there are no signs of tax evasion. 

A main vendor or contractor can cross this threshold sooner than you expect, so track your spend by supplier. 

 Each purchase should have a genuine commercial reason and a price consistent with the market. The goods or services should fall within the supplier's licensed activity, the origin and ownership of any goods should be established, and any intermediary involved should have a clear reason for being there. 

 Payment terms should be commercially justified. Third-party payments, or payments to accounts outside the supplier's country, need an explanation. 

Payments should be made electronically. Where cash is used, the reason should be enquired into and documented, and it should stay within reasonable commercial and legal limits. 

Every check needs to be documented, with an evidence file kept for each supplier. The decision also requires a written verification policy that names who performs, who reviews, and who supervises the checks. 

Without the evidence, it becomes much harder to show during an FTA review that you had no reason to suspect a problem. 

 A single supply below AED 10,000 (excluding VAT) does not need to be verified. 

But the exception falls away if total supplies from that supplier exceed AED 100,000 in the past or next 12 months. A small subscription or a regular freelancer can quietly cross that line over a year, so keep a running total per supplier rather than looking at each invoice alone. 

 You do not need a large finance team to make this work. A simple routine can help: 

Every new supplier: Verify identity, place of business and risk indicators before the first purchase. 

Every purchase: Check the price, the licensed activity and the payment method. 

Every month: Update spend by supplier, so you know who is above AED 100,000 or AED 375,000. 

Every 12 months: Re-verify suppliers you have not checked in that period. 

Before filing: Review your input VAT claims against the supplier files. 

Verify supplier → Verify supply → Pay properly → Keep evidence → Claim input VAT 

Input VAT used to depend mainly on having the right invoice. From 1 October 2026, it also depends on being able to show who you bought from and why the purchase was genuine. 

The earlier these checks are built into how your business buys and records transactions, the easier they are to maintain as you grow. 

Need support with your bookkeeping, VAT and accounting? Kitaab can help you keep supplier records alongside your books and review input VAT before it goes into your return. 

This article is a general summary of FTA Decision No. 13 of 2026 and does not constitute tax advice. The exact obligations can vary by business, so please speak to a tax professional about your specific circumstances