On 20 August 2026, the Federal Tax Authority published Decision No. 13 of 2026, issued on 22 July 2026 and effective from 1 October 2026, which introduces mandatory measures, procedures, and conditions that Taxable Persons must follow for the verification of the validity and integrity of supplies of goods or services they receive before deduction of Input Tax. The Decision aims to enhance transparency, reduce fraud, and ensure compliance with VAT regulations.
Under the Decision, Taxable Persons are now required to implement robust verification processes to confirm the identity and authenticity of their suppliers and supplies, thereby safeguarding the integrity of the VAT system. It shifts the burden of due diligence onto the recipient of a supply, requiring them to actively confirm that a transaction is genuine before claiming VAT refund on it.
In this Alert, our Middle East Managing Partner, Olivier Remacle, and our Indirect Tax Of Counsel, Laurent Grençon, summarise the supplier verification and the supply validation obligations, as well as the documentation and record-keeping obligations provided by the Decision.