Do you work with businesses outside Dubai?

Yes. BPOAS serves clients across all 7 Emirates and manages UAE entities for overseas owners who cannot be on-site themselves.

What makes BPOAS different from other accounting firms in Dubai?

We come to your office, verify physical source documents ourselves, and run every account through two departments — accounting and tax — before you see a number. Most firms work remotely from what you send them.

Do you handle both Zoho Books and Odoo implementation?

Yes. BPOAS is a certified partner for both Zoho Books and Odoo. We implement, migrate, and train your team — then continue managing your books on the same system.

What is FTA Decision No. 13 of 2026?

FTA Decision No. 13 of 2026 is a ruling issued by the UAE Federal Tax Authority that changes the conditions under which a VAT-registered business can recover input tax. Under this decision, a valid tax invoice is no longer sufficient on its own to support an input tax recovery claim. Businesses must now verify both the supplier and the supply before recovering VAT.

The decision takes effect on 1 October 2026.

This is one of the most significant changes to UAE VAT input tax rules since the introduction of VAT in 2018. Every VAT-registered business in the UAE that files regular VAT returns and claims input tax needs to understand what this decision requires and update their processes before the effective date.

What Changed: Before and After FTA Decision No. 13 of 2026

Before 1 October 2026

A correctly issued tax invoice that met the FTA’s formatting and content requirements was sufficient to support an input tax recovery claim. If the invoice was valid, the business could recover the VAT paid on that purchase.

After 1 October 2026

A valid invoice remains necessary, but it is no longer enough. Businesses must also verify that:

The supplier is legitimate and exists as a registered entity.
The supply actually took place — meaning the goods or services described on the invoice were genuinely received.

This dual verification requirement adds a new layer of due diligence to the VAT return process. Businesses that cannot demonstrate supplier and supply verification may have their input tax recovery denied or reversed on audit.

Who Does This Affect?

FTA Decision No. 13 of 2026 applies to all VAT-registered businesses in the UAE that claim input tax on purchases. This includes businesses in trading, retail, and wholesale that purchase goods from suppliers; service businesses that receive third-party services and recover VAT on those costs; companies in construction and project-based industries with high supplier invoice volumes; and any business that regularly files VAT returns with input tax claims.

If your business files quarterly or monthly VAT returns in the UAE, this decision directly affects your VAT recovery process.

The Three Verification Thresholds

FTA Decision No. 13 of 2026 introduces tiered verification requirements based on transaction value. The three thresholds are:

AED 10,000 — De minimis per supply

This is the minimum threshold per individual supply. The de minimis level indicates that supplies below this value per transaction are subject to a lighter standard of verification, though the verification requirement is not eliminated entirely.

AED 100,000 — Per supplier over 12 months

Once the cumulative value of supplies from a single supplier reaches AED 100,000 over a rolling 12-month period, enhanced verification requirements apply to that supplier relationship. Businesses with high-volume supplier relationships need to maintain documented verification for those suppliers.

AED 375,000 — Enhanced due diligence threshold

At this cumulative value, the FTA applies the most stringent enhanced checks. Businesses transacting at this level with individual suppliers must be able to demonstrate thorough supplier and supply verification.

The thresholds are cumulative, not per-invoice. A business that pays multiple invoices to the same supplier must track the running total against these thresholds.

What Businesses Need to Do Before 1 October 2026

There are three areas that need to be addressed before the decision takes effect.

1. Review your supplier list

Identify all suppliers from whom you regularly claim input tax. For each supplier, confirm they are a legitimate registered entity. Check TRN registration status where applicable. Document this review — if the FTA audits your VAT return, you will need to show evidence of the verification, not just the invoice.

2. Update your invoice processing procedure

Your accounts payable process needs to include a supplier and supply verification step before VAT is posted as recoverable. This cannot be done after the VAT return is filed. The verification must be documented at the time the invoice is processed.

3. Review your current VAT returns

If you have recently filed VAT returns that include input tax claims from suppliers you have not formally verified, consider whether those claims are now at risk under the new standard. An accounting review before October may identify exposures that need to be addressed proactively.

The Connection to UAE eInvoicing

FTA Decision No. 13 of 2026 and the UAE eInvoicing mandate are separate regulatory requirements, but they are converging toward the same outcome: verified, traceable transactions.

Under the UAE eInvoicing system, invoices are transmitted through the Peppol network and validated in real time. A supplier registered on the network and issuing invoices through an Accredited Service Provider (ASP) is, by definition, a verifiable supplier. The transaction record exists independently of the paper invoice.

For businesses moving toward eInvoicing compliance, registration on the Peppol network also begins to address the supplier verification requirement under Decision No. 13. The two mandates reinforce each other. Businesses that handle both together are building a compliance framework that satisfies both sets of requirements at once.

How BPOAS Can Help

BPOAS is a UAE-based accounting and tax compliance firm working on-site with SMEs across Dubai and the Emirates. Our team handles VAT return preparation, input tax review, and FTA compliance for clients across trading, services, construction, and retail sectors.

For FTA Decision No. 13 of 2026, we are helping clients with three things: supplier verification reviews (auditing current supplier lists and establishing documented verification for suppliers above the relevant thresholds); VAT process updates (updating accounts payable and invoice processing procedures to include the new verification step before input tax is posted as recoverable); and eInvoicing and VAT integration (where clients are also preparing for eInvoicing compliance, we are handling both requirements together under a single engagement).

If your business claims input VAT and you have not yet reviewed how Decision No. 13 affects your process, contact BPOAS at bpoas.ae. The effective date is 1 October 2026.

Frequently Asked Questions

What is FTA Decision No. 13 of 2026?

FTA Decision No. 13 of 2026 is a UAE Federal Tax Authority ruling that requires businesses to verify their supplier and the supply itself before recovering input VAT. It takes effect on 1 October 2026 and applies to all VAT-registered businesses in the UAE.

Does a valid tax invoice still allow me to recover VAT in the UAE?

No, not on its own. From 1 October 2026, a valid tax invoice is a necessary condition but not a sufficient one. Supplier and supply verification is also required under FTA Decision No. 13 of 2026.

What does supplier verification mean under FTA Decision No. 13 of 2026?

Supplier verification means confirming that the supplier is a legitimate, registered entity and that the goods or services described on the invoice were actually received. The FTA requires businesses to document this verification, not just hold the invoice.

What are the thresholds under FTA Decision No. 13 of 2026?

The decision sets three thresholds: AED 10,000 de minimis per supply, AED 100,000 cumulative per supplier over 12 months, and AED 375,000 where enhanced due diligence checks apply.

Who does FTA Decision No. 13 of 2026 affect?

All VAT-registered businesses in the UAE that claim input tax on purchases. This includes businesses in trading, retail, services, construction, and any sector where VAT is paid on business expenses and recovered through the VAT return.

How does FTA Decision No. 13 of 2026 relate to UAE eInvoicing?

The two are separate requirements but they reinforce each other. eInvoicing registration on the Peppol network creates a verified, traceable transaction record that can support the supplier verification requirement under Decision No. 13. Businesses managing both compliance areas together build a stronger foundation than those handling them separately.

What should my business do before 1 October 2026?

Review your supplier list, confirm supplier legitimacy and TRN registration, update your invoice processing procedure to include a verification step before input tax is posted as recoverable, and document everything. If you are unsure where your current process stands, a VAT compliance review before October is the right starting point.