Suppliers billing you over AED 375,000 a year now need checking before you claim the VAT

A facilities company with sixteen staff buys cleaning supplies, uniforms and spare parts from the same six suppliers every month. Nobody has ever asked those suppliers for anything beyond the invoice itself. The VAT gets deducted the week the bill arrives, and nobody has thought twice about it in three years.

What changed on 1 October

FTA Decision No. 13 of 2026 sets out the checks a business is expected to make on its suppliers and their supplies before deducting input VAT. It applies from 1 October 2026. For a company supplier that means confirming it is properly incorporated, confirming who signs for it, and confirming it really operates from the place it says it does. The decision also expects you to look at whether each supply makes sense: the price against the market, how it is paid, and whether it fits the supplier's licensed activity. And it expects a written internal policy and a record of the checks.

Small supplies under AED 10,000 before VAT can mostly be left out, but that exception stops once a supplier's business with you passes AED 100,000 over twelve months. Above AED 375,000 over twelve months, the bar goes up again: evidence that the supplier holds a UAE bank account, and a look at what is publicly known about them.

Why the twelve month count is the hard part

The thresholds look back over the previous twelve months, and forward at what you expect over the next twelve. A supplier can cross AED 100,000 or AED 375,000 on any invoice, in any month. Notice it late and you may already have deducted VAT on supplies you hadn't checked.

What this looks like in practice

• Every supplier carries a running total of what it has billed you over the last twelve months.
• The system flags a supplier as it approaches AED 100,000 or AED 375,000, before the next invoice is paid.
• The checks and the bank account evidence sit against the supplier's record, so nobody goes hunting for them at return time.
• A short written policy names who does the checks and when.

A person still decides what to do about a supplier who looks wrong. The running total and the flag are the part a machine should be doing anyway.

Where Finamatik fits

We build this kind of supplier monitoring inside the accounting system you already use, on your own accounts, and it stays yours. What we show publicly is built and tested on sample data. If you want a quick read on where your own supplier list sits against these thresholds, book a free twenty minutes at finamatik.com/book.

Read the decision on the FTA website, or ask your tax adviser how it applies to you. This piece is general information, not tax advice.