{
  "id": 8841227,
  "title": "New era for input VAT credit – Do you know your suppliers?",
  "url": "https://urgent.news/2026/09/21/new-era-for-input-vat-credit-do-you-know-your-suppliers",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-21T04:00:00.000Z",
  "source": {
    "name": "Gulf News",
    "slug": "gulf-news",
    "url": "https://gulfnews.com/business/analysis/new-era-for-input-vat-credit-do-you-know-your-suppliers-1.500681516"
  },
  "original_language": "en",
  "account": "As of January 1, 2026, the Federal Tax Authority (FTA) can reject input VAT credits if a transaction was part of a supply chain linked to tax evasion, and the taxpayer should have known about this link. Businesses must now carry out and document \"Know Your Supplier\" (KYS) checks on suppliers, which includes verifying suppliers annually and checking each supply transaction. Businesses must appoint an in-house compliance officer, maintain an internal KYS policy, and verify suppliers based on specified thresholds of Dh100,000 and Dh10,000. The FTA has provided procedures for these checks, but the process may impose a heavy administrative burden, especially for businesses that supply goods or services to multiple other businesses. The time and cost involved in conducting KYS checks could be significant, as a typical UAE business might need to spend up to 25 days checking just 100 suppliers. However, businesses may choose not to conduct KYS checks on well-established suppliers or on small suppliers where verification is not practical. The \"should have known\" principle is not new and is based on European Court of Justice rulings. Businesses must either produce documented KYS checks or risk losing their input VAT claim if tax evasion is later discovered within the supply chain.",
  "summary": "Dubai: From January 1, 2026, the FTA can reject an 'input VAT credit' — the tax a business pays on business-related purchases and imports and uses to offset VAT collected from customers — if a transaction was part of a supply, or supply chain, linked to tax evasion and the taxpayer “should have been aware” of that link. If a business fails to carry out the required supplier or transaction checks,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}