The UAE Ministry of Finance has issued Federal Decree-Law No. 16 of 2025, introducing key updates to the VAT Law, effective from 1 January 2026.
📅 Issued on 1 October 2025 and published on 3 December 2025.
Key Highlights:
Article 48 – Simplified Import Compliance
Self-invoicing will no longer be required for goods and services imported for business purposes, easing compliance for cross-border transactions.
Article 54 – Strengthened Anti-Evasion Measures
The Federal Tax Authority (FTA) can now deny input tax recovery where supplies are linked to tax evasion arrangements. Taxpayers are required to verify the legitimacy of supplies, reinforcing shared responsibility and stronger governance across the supply chain.
Article 74 – Refund Time Limits
A five-year limit has been introduced for submitting requests to reclaim excess refundable VAT after reconciliation. Claims submitted after this period will no longer be accepted, preventing the buildup of old balances and ensuring financial certainty and fairness among taxpayers.
🕒 As a transitional measure, eligible taxpayers may submit claims before 1 January 2027, in line with Federal Decree-Law No. 17 of 2025 (amending the Tax Procedures Law).
Article 79 (bis) – Statute of Limitation
This article has been fully repealed under Federal Decree-Law No. 16 of 2025.
✅ These amendments underline the UAE’s commitment to enhancing tax compliance, reducing risks, and improving VAT system efficiency