Federal Tax Authority
Federal Decree-Law No. 16 of 2025 Amending the VAT Law
Amends the VAT Law (Federal Decree-Law No. 8 of 2017): clarifies reverse-charge self-invoicing, introduces a five-year limitation period to claim excess recoverable input tax, adds Article 54 provisions denying input tax recovery where connected to tax evasion, and repeals the former Article 79(bis) limitation provision. Effective 1 January 2026; also the legal basis referenced in Public Clarification VATP046. Issued 25 November 2025; publish date 3 December 2025.
What firms should do
Yes — review input tax recovery claims and evidentiary documentation against the new five-year limit and evasion-linked denial rule
- Regulator
- Federal Tax Authority
- Type
- Cabinet Decision
- Status
- Enacted
- Published
- 3 Dec 2025
- Takes effect
- 1 Jan 2026
- Reference
- Federal Decree-Law No. 16 of 2025 (technically primary legislation, not a Cabinet Decision — closest available Source_Type used)
- Topic
- VAT
- Impact
- High
Found automatically on the regulator's website and summarised by AI by Arakan Lexara. Not legal advice; check the official source before relying on it.
Arakan Lexara Weekly
Get the week's UAE regulatory changes every Monday.
Key developments, what firms are asked to do and the deadlines ahead. Free.