1. What is the UAE supplier validation mandate?
It is Federal Tax Authority Decision No. 13 of 2026, which sets the measures a taxable person must take to verify the validity and integrity of the supplies it receives before deducting their input tax.
The Decision was issued on 22 July 2026 under Article 54 (bis) of the VAT Law and has applied since 1 October 2026. It is aimed at tax evasion through the supply chain, and because the checks come before the deduction, a business should be able to show them to the FTA on request.
2. Who does the supplier validation mandate apply to?
It applies to every taxable person, meaning any business registered or required to register for UAE VAT, for the supplies it receives and deducts input tax on.
Which supplies can skip the checks?
A business may skip the checks on a supply worth less than AED 10,000 excluding VAT, but not once supplies from that supplier exceed, or are expected to exceed, AED 100,000 over 12 months.
Does it cover suppliers outside the UAE?
The Decision does not address suppliers outside the UAE, and the FTA has not yet published guidance on them.
3. What must you check about each supplier?
You must verify the supplier's identity, its place of business and its risk indicators, and once supplies from it pass AED 375,000 a year, its bank account and public reputation too.
| Check | What it requires | Article |
|---|---|---|
| Identity of an individual | A valid Emirates ID or passport, and a meeting, in person or virtual, before the supply | Art. 3(1)(a) |
| Incorporation of a company | Incorporation confirmed in official databases or by certificate, matching the supplier's name, address and employees, plus the ID of the person authorised to represent it | Art. 3(1)(b) |
| Place of business | An actual place of business, confirmed electronically or by a visit, that fits the supplier's activities | Art. 3(2) |
| Risk indicators | No more than two address changes or two key-staff changes in 12 months, and no transactions out of proportion to the supplier's size or history; otherwise a written justification | Art. 3(3) |
| Bank account and reputation | Above AED 375,000 over the past or next 12 months: written confirmation from a UAE bank that the supplier holds an account, and a review of public reviews and media | Art. 3(4) |
The bank confirmation need not be addressed to you, and must carry no reservations or conditions.
4. What must you check about each supply?
Every taxable supply you receive must have a genuine commercial reason, justifiable payment terms and prices, and fall within what the supplier is licensed to do.
- The supplier takes part in the transaction for genuine commercial reasons.
- Payment is made electronically; a third party in the payment, or a bank account outside the supplier's country of incorporation, needs a reasonable commercial explanation.
- Prices and margins are not unjustifiably different from the market.
- The goods or services fall within the supplier's ordinary or licensed activities.
- Goods are authentic, and the supplier owns them or has the right to dispose of them.
- Where the supplier acts as an intermediary, its role has a clear commercial explanation.
A cash payment needs a documented commercial reason, must stay within the limits set in tax legislation and must be easy to verify.
5. How often must you verify, and what must you keep?
Verify a supplier when you first deal with it and again whenever 12 months have passed since its last verification, check every supply, and keep the records and a written policy for the FTA.
- Verify the supplier on first dealing, and on any later dealing where it has not been verified in the previous 12 months.
- Verify each taxable supply you receive or accept.
- Document every verification step and keep the supporting records.
- Keep a written policy naming who carries out, reviews and supervises the checks, with their powers and responsibilities.
6. How does PurveO help with supplier validation?
PurveO Supplier Validation holds these checks as rules with the evidence each one needs, and PurveO Supplier Trust re-runs them on a schedule, so a verification that has passed 12 months shows before the next supply.
Each check records its source document, who approved it and when: the evidence trail the Decision asks a business to keep.