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VAT accounting Dubai businesses follow is changing under new UAE rules, and companies should understand them before claiming input VAT. From 1 October 2026, new requirements under FTA Decision No. 13 of 2026 address supplier and transaction verification, while FTA Decision No. 17 of 2026 clarifies input VAT recovery on certain employee expenses. The UAE has introduced important VAT changes that businesses should understand before claiming input VAT. From 1 October 2026, new requirements under FTA Decision No. 13 of 2026 address supplier and transaction verification, while FTA Decision No. 17 of 2026 clarifies input VAT recovery on certain employee expenses. Further amendments under Cabinet Decision No. 149 of 2026 also affect areas such as composite supplies, cash payments, healthcare, capital assets, and input tax apportionment. VAT Accounting Dubai and Supplier Due Diligence – FTA Decision No. 13 Businesses claiming input VAT must take reasonable steps to verify their suppliers and transactions. Key areas include: Verify the supplier’s identity, business address, and authorised representatives. Monitor unusual transactions and changes in addresses or key personnel. For supplies exceeding or expected to exceed AED 375,000 over the relevant 12-month period, conduct additional checks, including verification of the supplier’s UAE bank account. Document the reasons for cash or third-party payments. Confirm that supplies are genuine and commercially justified. Maintain records of supplier verification procedures and supporting evidence. A small-supply exception may apply to supplies below AED 10,000, but this generally does not apply where total supplies from the supplier exceed or are expected to exceed AED 100,000 over the relevant 12-month period. Employee Expenses and VAT Recovery – FTA Decision No. 17 FTA Decision No. 17 of 2026 clarifies when input VAT may be recovered on certain goods and services provided to employees free of charge, subject to specific conditions. The covered expenses include: Employee transportation for travel between residence, workplace, client premises, or other work-related locations. Food and beverages where employees work or reside in remote, distant, or isolated areas without suitable food facilities. Employee accommodation required by operational needs and the nature of the work. Temporary accommodation for new employees for up to 30 days. Mobile phones, airtime, data, and internet access are required for work, subject to documented policies and reasonable monitoring. Business-related parking fees supported by an approved policy and appropriate payment records.  Input VAT recovery is subject to the specific conditions in the decision and is not automatic. Businesses should maintain appropriate policies, records, and supporting documentation. For VAT accounting Dubai teams, this means keeping a written policy and payment records for every covered expense category. Other VAT Changes to Watch Cabinet Decision No. 149 of 2026 introduces further amendments to the UAE VAT Executive Regulation, including changes relating to: Composite supplies Cash payments and input VAT recovery Employee-related supplies Healthcare services and medical products Capital Assets Scheme Tax Credit Notes Input tax apportionment The revised input tax apportionment methodology applies from the first tax year beginning after 1 October 2027. Finance teams handling VAT accounting Dubai filings should plan early for this revised methodology. VAT Accounting Dubai What Should Businesses Do? Businesses should review their VAT processes before claiming input VAT under the updated rules. Key steps include: Update supplier onboarding and due diligence procedures. Review employee expense and VAT recovery policies. Strengthen supporting documentation and record-keeping. Review cash and third-party payment arrangements. Train finance and accounts teams on the new requirements. Identify potential input VAT recovery gaps. Align your VAT accounting Dubai procedures with the new input tax rules before the next return. Strong VAT accounting Dubai records protect your claims. Frequently Asked Questions about VAT Accounting Dubai When do the new VAT changes take effect?Most changes apply from 1 October 2026, while input tax apportionment changes take effect later. Is input VAT automatically recoverable on employee expenses?No. For VAT accounting Dubai businesses, recovery depends on meeting the conditions under FTA Decision No. 17 of 2026. What is the AED 375,000 supplier threshold?Additional due diligence applies when supplies exceed or are expected to exceed AED 375,000 in 12 months. Is supplier verification required for small purchases?Supplies below AED 10,000 may qualify for an exception, subject to the AED 100,000 annual supplier threshold and other conditions, so VAT accounting Dubai teams should still document every supplier check. Stay Ready for the VAT Accounting Dubai Changes with GSPU   GSPU Tax Consultancy can help you review supplier due diligence, employee expenses, input VAT recovery, documentation, VAT returns, and FTA compliance. With practical experience in VAT planning, advisory, and compliance, GSPU helps businesses understand the updated requirements and strengthen their VAT processes. Contact GSPU Tax Consultancy, UAE. +971 52 853 2600 | info@gspuuae.com | https://gspuuae.com/  Numerous changes are happening in workplaces. The enormous progress in using technology results in a high degree of automation, transparency and acceleration. In a global business hub where the use of technology is in full momentum, there is no choice but to adopt the changes for businesses to become successful in this era of constant change.​ GSPU Auditing, a dynamic Audit & Accounting firm with 20+ years of international experience, provides audit & assurance, accounting & financial, Tax & business consulting, company incorporation & management consultancy services, adopting a professional & friendly approach and caring about the success of our clients, holding an enviable reputation. Being the Best Auditing Firm & TAX Consultancy in the UAE, our well-known & Certified Accountants & auditors, who have international expertise as well as comprehensive knowledge of the local market, work hard with a strong moral commitment and gain the trust of our customers by providing professional services of high quality in an independent, objective and ethical manner, obeying Integrity and professionalism. 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