VAT: Amendments in UAE VAT & Tax Procedures Law

The UAE has issued Federal Decree Laws No. 16 & 17 of 2025, effective from 1 January 2026, introducing key amendments to VAT and Tax Procedures.

Key VAT Law Amendments

• Removal of self-invoicing on imports
• Restriction of input tax recovery linked to tax evasion
• 5-year limit on carry forward of excess VAT
• Repeal of statute of limitation

Key Tax Procedures Amendments

• 5-year limit for VAT refund claims
• Voluntary disclosure limited to specified cases
• Extended audit periods for refund claims
• Transitional relief for expired refund claims

Way Forward

Businesses should review historical VAT positions and submit refund claims within prescribed timelines to avoid lapses.

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