Overview
- The Ministry of Finance issued Federal Decree-Law No. 16 of 2025 amending the 2017 VAT law, effective January 1, 2026.
- Taxable persons no longer need to issue self-invoices under the reverse charge, with a requirement to retain specified supporting documents.
- A five-year deadline now applies to reclaim excess refundable tax after reconciliation, after which the right to reclaim expires.
- The Federal Tax Authority can deny input tax deductions for supplies it deems part of tax-evasion arrangements, increasing verification obligations for taxpayers.
- Further operational details will be set out in the Executive Regulation and FTA guidance ahead of the effective date.