Ministry of Finance Announces Amendments to VAT Executive Regulation
Fahad Shabbir (@FahadShabbir) | Published September 08, 2026 | 06:00 PM
ABU DHABI (UrduPoint / Pakistan Point News / WAM - 08th Sep, 2026) The Ministry of Finance has announced the issuance of Cabinet Decision No. (149) of 2026, amending certain provisions of the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT).
This move is part of the UAE's ongoing efforts to further develop its tax system, enhancing transparency, efficiency, and alignment with international best practices.
Key Amendments:
- Simplification and Clarity: The amendments aim to streamline procedures and provide greater clarity for taxable entities, fostering voluntary compliance and reducing tax disputes.
- Medical Products: Updates to provisions regarding the supply and import of medical products reflect the UAE's updated legislative framework for healthcare.
- Employee Accommodation: Clarifies rules for employee accommodation regarding input tax recovery purposes.
- Capital Assets Scheme: Ensures consistency with VAT Law by refining the application scope of the Capital Assets Scheme.
- Input Tax Apportionment: Refines methodology for input tax apportionment to better reflect taxable persons' economic activities, while preserving existing rules for government entities and charities.
- Single Composite Supply: Introduces provisions governing VAT treatment of single composite supply based on economic substance.
- Cash Payments Restrictions: New provisions limit recovery of input tax for cash payments exceeding thresholds set by the Minister of Finance.
The Ministry of Finance emphasized that these amendments reflect their commitment to:
- Reviewing and enhancing UAE tax legislation to stay abreast of economic and legislative developments.
- Strengthening the country's competitive tax environment.
- Facilitating effective implementation of the VAT system and promoting compliance for businesses.