Membres
Cragus Group | UAE FTA clarifications on amendments to the VAT Federal Decree-Law No. 8 of 2017
The UAE Federal Tax Authority (FTA) issued Public Clarification VATP046 on 4 September 2026 to explain amendments introduced by Federal Decree-Law No. 16 of 2024, effective from 30 October 2024, and Federal Decree-Law No. 16 of 2025, effective from 1 January 2026. The clarification addresses changes to VAT treatment of operation from foreign business in the UAE, electronic invoicing, input tax recovery, the reverse charge mechanism, VAT credit balances and the treatment of transactions connected with tax evasion.
The principal management issue is that these amendments affect not only VAT reporting, but also the evidence businesses must retain, the controls they must operate and the timing of VAT recovery. Multinational groups should review the changes at both UAE-entity and group-process level.
Dominique Tissot
Partner
The Cragus Group Limited
Mobile: +971 55 88 438 14
Email: dtissot(@)cragus.com
