FTA Decision No. 13 of 2026: UAE Supplier Verification Rules

From 1 October 2026, UAE businesses claiming Input VAT will need to pay closer attention to how they verify suppliers and the transactions behind their VAT claims.

FTA Decision No. 13 of 2026 introduces procedures around supplier verification, transaction review, risk assessment and supporting documentation before deduction of Input Tax.

For businesses dealing with multiple, recurring or high-value suppliers, this may require changes to supplier onboarding, Accounts Payable, procurement and VAT-review processes.

The practical shift can be viewed as:

Supplier Verification → Risk Assessment → Transaction Verification → Supporting Evidence → Input VAT Claim

Supplier verification should therefore go beyond simply collecting documents and recording an invoice.

What Is FTA Decision No. 13 of 2026?

The Decision sets out measures, procedures and conditions that Taxable Persons must follow when verifying the validity and integrity of supplies received before deducting Input Tax.

It takes effect from 1 October 2026.

From an operational perspective, businesses should think beyond:

Tax Invoice → Record Invoice → Claim Input VAT

The stronger process involves verifying both the supplier and the actual transaction, maintaining appropriate evidence and documenting the checks performed.

Why Is Supplier Verification Important?

Input VAT claims may be challenged in circumstances connected with Tax Evasion where the Taxable Person knew, or should have known, about relevant issues.

The Decision therefore places greater emphasis on businesses understanding:

• Who the supplier is

• Whether the supplier's business is genuine

• Whether relevant supplier-risk indicators exist

• Whether the transaction makes commercial sense

• Whether appropriate supporting evidence is available

For finance teams, supplier verification should now be viewed as an ongoing control rather than a one-time onboarding formality.

Key Requirements Businesses Should Review

1. Verify New Suppliers

When dealing with a new supplier, businesses may need to obtain and verify information such as:

• Valid business or incorporation information

• VAT registration / TRN information

• Legal name and business details

• Business address

• Authorised representative details

• Identification documents

• Contact information

• Nature of business activity

• Bank information where relevant

The exact checks will depend on the supplier and applicable circumstances.

2. Review Existing Suppliers

Supplier verification is not necessarily a one-time exercise.

For recurring dealings, the Decision requires verification where the supplier has not been verified during the previous 12 months.

A simple supplier record can therefore track:

• Verification date

• Documents obtained

• Checks performed

• Issues identified

• Next review date

This gives finance teams a clearer way to monitor recurring suppliers.

3. Assess Supplier Risk

The Decision identifies specific supplier-risk indicators, including:

• Repeated changes in business address

• Repeated changes in key personnel

• Transactions that are disproportionate or unexpected relative to the supplier's business

The wider verification process also requires businesses to pay attention to matters such as pricing, payment arrangements, third-party involvement and supporting evidence.

A risk indicator does not automatically mean a supplier should be rejected.

It may mean additional verification or evidence is appropriate.

The AED 375,000 Supplier Threshold

Where supplies from a supplier exceed AED 375,000 over the previous 12 months, or are expected to exceed that amount over the next 12 months, additional verification requirements apply.

These include bank-account confirmation and review of relevant publicly available information relating to the supplier.

This makes supplier-level purchase monitoring important.

Finance teams should be able to identify suppliers approaching or crossing the threshold before VAT-return preparation begins.

Verify the Underlying Transaction

Verifying the supplier is only part of the process.

Businesses should also consider whether the transaction itself is genuine, properly supported and commercially reasonable.

Depending on the transaction, supporting documents may include:

• Purchase orders

• Quotations

• Contracts

• Tax invoices

• Delivery notes

• Goods Received Notes

• Evidence that services were completed

• Correspondence

• Payment evidence

• Bank statements

For example, where a consultancy invoice is received, management should be able to answer:

Why was the service required? Who provided it? What was supplied? Was it received? How was it paid? Does the transaction make commercial sense?

The focus is on demonstrating that the transaction has genuine commercial substance and appropriate evidence behind it.

Pay Attention to Bank-Account Information

Payment arrangements may also require closer attention.

Where enhanced verification applies, businesses should verify relevant supplier bank-account information.

If a supplier requests payment to an unrelated third party, that should not automatically be treated as fraud.

However, the business should obtain and retain a reasonable commercial explanation and supporting documentation where appropriate.

Maintain Supplier Verification Records

A practical way to organise the process is through a structured Supplier Verification File or digital supplier record.

It may include:

Supplier information

• Business / incorporation documents

• VAT / TRN evidence

• Address and contact details

• Authorised-person information

Verification and risk

• Checks completed

• Issues identified

• Additional verification

• Review dates

Transaction evidence

• Purchase orders

• Contracts

• Tax invoices

• Delivery or service evidence

• Payment records

This creates a clear trail showing what was checked, when it was checked and what evidence was retained.

What Should Businesses Do Before 1 October 2026?

Businesses should use the remaining time to review their existing processes.

1. Prepare a supplier master list — Identify active and recurring suppliers.

2. Identify high-value suppliers — Monitor suppliers approaching relevant purchase levels.

3. Collect missing information — Close gaps in supplier records.

4. Introduce supplier-risk checks — Define how risk indicators are identified and reviewed.

5. Strengthen transaction verification — Ensure purchases are supported by appropriate evidence.

6. Schedule supplier reviews — Track when each supplier was last verified.

7. Assign responsibilities — Define who performs and reviews the checks.

8. Train AP, Finance and Procurement — Make sure the process works before invoices reach the VAT return.

Impact on Accounting and Bookkeeping

Traditional invoice processing may focus heavily on:

Invoice details → TRN → VAT charged → Expense recorded

Those checks remain important.

Businesses should now also consider:

Supplier verification → Commercial substance → Supporting evidence → Payment circumstances → Input VAT review

This means the change can affect Accounts Payable, bookkeeping, procurement, supplier onboarding and VAT controls—not only the tax team.

What Businesses Should Avoid

First, avoid a document-collection mentality.

Having a trade licence and VAT certificate does not automatically mean every supplier or transaction has been properly assessed.

Second, avoid excessive paperwork without a clear process.

The objective should be a reasonable, properly documented verification process that addresses the required checks and relevant risk indicators.

How ValuNxt Can Help

Businesses with multiple suppliers, significant Input VAT claims, high-value purchases or more complex procurement arrangements may need support translating the Decision into workable finance processes.

ValuNxt can help businesses strengthen the flow between:

Supplier KYC → Supplier Verification → Risk Assessment → Purchase Review → VAT Review → Documentation

The objective is not simply to prepare a VAT return.

It is to strengthen the controls behind the VAT position.

Is Your VAT Process Ready for 1 October 2026?

FTA Decision No. 13 of 2026 may require businesses to review supplier onboarding, transaction verification, supporting documentation and internal VAT controls before the new requirements take effect.

Businesses should be able to demonstrate that appropriate and reasonable steps were taken to verify suppliers and the genuineness of transactions before claiming Input VAT.

Explore ValuNxt Tax Advisory →

Disclaimer: This article is for general information purposes and does not constitute tax or legal advice. Businesses should assess the requirements of FTA Decision No. 13 of 2026 based on their specific circumstances and obtain professional advice where required.