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The UAE has introduced targeted amendments to its VAT Executive Regulations through Cabinet Decision No. 149 of 2026. This article examines the most commercially significant changes, including updates to input tax recovery, single composite supplies, employee-related expenses, high-value cash payments and input tax apportionment, alongside key clarificatory amendments that may require businesses to review their VAT policies, documentation and compliance processes.

The UAE Ministry of Finance has released guidance on Pillar Two Information Return filing requirements, outlining which entities must file, when reliance on foreign filings is permitted, and how the rules align with the OECD's centralised filing framework.

Input Tax Verification (VAT) | Accounting Records | Disposal of Seized & Abandoned Goods FTA Decisions are binding regulatory instruments issued by Federal Tax Authority (FTA) to implement the UAE tax laws. Each Decision draws its authority from a parent law – the VAT Law, the Tax Procedures Law, the Excise Tax Law or the Corporate Tax Law and it sets out the detailed rules, procedures, timelines and conditions that taxpayers must follow.

A shift from documentation to active control: the FTA now expects businesses to verify, and evidence, the integrity of their suppliers and supplies before recovering input VAT — making VAT recovery a shared responsibility of finance and procurement.

Recent UAE tax developments affect cross-border investment, banks, small businesses and multinational groups. Qatar has ratified its double tax treaty with the UAE, the FTA has clarified AT1 corporate tax treatment, Small Business Relief is extended to 2029, and new Top-up Tax registration deadlines apply. This alert sets out the practical actions for each.

The UAE Federal Tax Authority has issued Public Clarification CTP011, confirming that downward transfer pricing adjustments can be made through the Corporate Tax Return without prior approval, subject to full disclosure and robust supporting analysis.

The Federal Tax Authority has issued Corporate Tax Public Clarification CTP010, confirming that Connected Person analysis under Article 36 must focus on substance and actual authority, not job titles alone.

The UAE has launched a formal R&D Tax Credit regime allowing eligible businesses to claim non‑refundable tax credits on qualifying R&D expenditure, with tiered rates, mandatory project pre‑approval and robust documentation requirements. At Grant Thornton UAE we support businesses on eligibility, applications and wider tax advisory needs.

On 23 February 2026, the UAE Ministry of Finance issued three comprehensive e‑invoicing guides, completing the legal, operational, and technical framework for e‑invoicing. With legislation finalised, ASPs approved, and EmaraTax enabled, businesses must now urgently select an Accredited Service Provider, perform a gap assessment, and prepare systems and processes ahead of mandatory implementation.

UAE Federal Tax Authority Introduces Advance Pricing Agreement (APA) Programme

This practical Q&A from the 26 November Thomson Reuters MENA webinar provides clear guidance on the UAE e‑invoicing mandate. Learn who’s in scope for B2B and B2C, how reverse charge mechanism (RCM) applies to imports and domestic transactions, and when self‑billing is required. Explore the process of appointing and linking an ASP in EmaraTax, ERP integration options including APIs and Odoo modules, and best practices for AP workflows such as handling rejections, credit notes, and reconciliation. The article also outlines UAE record retention rules for e‑invoicing compliance.

In our September 2025 edition of GT’s regional monthly Tax Newsletter, we provide the latest news updates affecting International Tax, Corporate Tax, Transfer Pricing, and Indirect Taxes in the UAE and across the Middle East region.

The UAE’s business landscape has undergone a remarkable transformation from an era when customs duties were the primary regulatory touchpoint to today’s sophisticated tax ecosystem. The next significant milestone is the rollout of e-invoicing - a move that signals not just a VAT-related change but a broader shift toward digitalisation and real-time tax transparency. This evolution underscores the UAE’s commitment to aligning with global best practices while challenging businesses to rethink their operational and technological readiness.

Discover how recent amendments to the UAE VAT Executive Regulations set the stage for the country’s e-invoicing mandate. Learn about key regulatory changes, industry implications, and how Grant Thornton UAE can help your business prepare for digital VAT compliance.

In our July & August 2025 edition of GT’s regional monthly Tax Newsletter, we provide the latest news updates affecting International Tax, Corporate Tax, Transfer Pricing, and Indirect Taxes in the UAE and across the Middle East region.

As the UAE moves closer to its July 2026 e-invoicing mandate, many businesses are understandably focused on meeting regulatory requirements. However, as explored in our recent webinar co-hosted with Avalara—a global leader in tax technology—this transition presents far more than a compliance challenge. It’s a timely opportunity to modernise finance operations, enhance data quality, and build resilience into your tax and reporting functions. At Grant Thornton UAE, our approach to e-invoicing is shaped by what businesses need most, read our full blog to learn more: