UAE Tax Updates: September 2026 | FTA Watch

Phoenix AdvisoryPublished 7 September 20264 min read

The supplier-verification decision deserves attention, but it is not the only change finance teams should act on. This September update brings together recent FTA and Ministry of Finance publications, separates publication dates from effective dates, and identifies the next practical step for each affected business.

1. VAT supplier verification starts on 1 October

FTA Decision No. 13 of 2026 sets out verification of suppliers and supplies before input VAT deduction. It includes identity and business checks, transaction review, written responsibilities and evidence retention, with a limited low-value exception. The decision was issued on 22 July; the FTA portal lists it on 20 August; it takes effect on 1 October 2026. Source: FTA Decision 13.

Next step: review the supplier register and expected purchases, then identify where onboarding and payment controls need evidence. Our supplier-verification guide explains the thresholds and includes a practical checklist.

2. Small Business Relief has been extended to 2029

The Ministry of Finance announced the extension on 7 August 2026. Ministerial Decision No. 131 of 2026 changes the end of the relief window to tax periods ending on or before 31 December 2029, for periods commencing on or after 1 June 2023. The AED 3 million revenue threshold and other eligibility conditions remain. Source: MoF announcement and amending decision.

Next step: revisit plans based on a 2026 expiry. Relief still needs an election and filing; an extension does not make every small entity eligible. We have updated our Small Business Relief guide and eligibility check.

3. Recordkeeping requirements are already effective

FTA Decision No. 4 of 2026 is effective from 30 July 2026. It addresses complete and legible copies, access to electronic systems and responsibility where a third party stores the information. Source: FTA Decision 4.

Next step: retrieve a complete historical transaction file through someone other than its original preparer. Read our recordkeeping guide for a simple handover and access check.

4. Qualifying distribution needs an additional auditor report

FTA Decision No. 6 of 2026 requires an agreed-upon procedures report for QFZPs conducting the specified qualifying distribution activity in or from a Designated Zone. It applies to periods starting on or after 1 January 2026; submission is generally due within thirty days after the relevant CT return filing deadline. Source: FTA Decision 6.

Next step: confirm scope with the independent auditor and organise customer and import evidence now. The free-zone distribution AUP guide explains the handoff.

5. September VAT clarification connects the changes

The FTA’s September clarification VATP046 explains the VAT-law amendments, including the supplier-verification connection to Article 54(bis). It also explains that removal of self-invoicing for concerned imports from 1 January 2026 does not remove VAT accounting or supporting-document obligations. An electronic invoice must still meet the VAT requirements to be a tax invoice. Source: VATP046.

Next step: check that your VAT process and e-invoicing implementation preserve the required records and tax logic. A new clarification of an existing amendment is not necessarily a new effective date.

6. Pillar Two has separate filing and registration work

On 25 August 2026, the MoF announced Ministerial Decision No. 133 of 2026 on the Pillar Two Information Return. It covers specified UAE constituent entities, joint ventures and related entities, with direct filing or filing through a designated local entity as provided by the decision, for fiscal years starting on or after 1 January 2025. Source: MoF announcement.

Separately, FTA Decision No. 12 of 2026 sets Top-up Tax registration deadlines. The general initial deadline is seven months after the end of the first in-scope fiscal year; the transitional deadline for fiscal years ending before 30 April 2026 is 30 November 2026. This is not a replacement deadline for ordinary Corporate Tax registration. Source: FTA Decision 12.

Next step: in-scope groups should allocate ownership of registration, the information return and local data collection. A small UAE entity should not assume group obligations disappear because its own revenue is low.

An action list for the next finance meeting

Our practical recommendation is to assign an owner and evidence location to each applicable item. That turns the news into a manageable review instead of a list of headlines. For ongoing filing dates, see the UAE tax calendar; for the earlier monthly note, see the August archive.