The UAE Federal Tax Authority (FTA) has issued Decision No. 13 of 2026, introducing supplier and transaction verification requirements from 1 October 2026, including due diligence checks, risk indicators, commercial substance requirements and internal compliance measures.
The UAE Federal Tax Authority (FTA) has issued Decision No. 13 of 2026, setting out verification requirements for suppliers and transactions, with the measures taking effect from 1 October 2026.
The decision was approved by the FTA Board on 23 June 2026 and issued on 22 July 2026. It was published in the Official Gazette and posted on the FTA website on 20 August 2026.
Under Article 3, businesses will be required to conduct due diligence when verifying both natural and corporate suppliers. The requirements include checking identity documents, conducting physical or virtual meetings and validating the supplier’s workspace.
The decision also identifies risk indicators that businesses must consider during supplier verification. These include changes to an address or key staff occurring more than two times within a 12-month period. Where a supplier’s transaction volume exceeds AED 375,000, businesses must also confirm the supplier’s UAE bank account.
Article 4 sets out requirements for verifying transactions and ensuring genuine commercial substance. Businesses must establish that goods involved in transactions are authentic and provide appropriate justification for payments made through third parties or offshore arrangements. Electronic payment methods are preferred over cash.
Article 5 requires businesses to establish internal compliance measures. These include written verification policies, clearly assigned staff responsibilities and appropriate record-keeping procedures. The measures are intended to ensure that businesses can demonstrate compliance during FTA audits.
Article 6 provides exemptions and limits. Transactions below AED 10,000 are generally subject to an exemption from the verification requirements. However, an aggregate supplier limit of AED 100,000 overrides the individual transaction threshold, meaning verification becomes mandatory once the supplier’s aggregate transactions reach that amount, regardless of the size of individual transactions.
The decision is therefore scheduled to apply from 1 October 2026, giving businesses time to establish supplier and transaction verification procedures before the requirements take effect.
