United Arab Emirates: Tax Authorities

The UAE Federal Tax Authority has introduced new supplier verification and supply validation requirements that fundamentally alter VAT compliance obligations. Taxable persons must now implement comprehensive due diligence processes to confirm the authenticity of suppliers and transactions before claiming VAT refunds. This regulatory shift places unprecedented responsibility on businesses to actively validate the legitimacy of their supply chain transactions.

The introduction of Corporate Tax in the United Arab Emirates (“UAE”) marked a significant shift from a largely tax neutral environment to a structured fiscal regime aligned with international standards.

On 8 December 2025, the Federal Tax Authority issued Decision No. 8 of 2025 setting out timelines for tax compliance requirements applicable to certain investment funds and their juridical investors.