In 2026, UAE VAT regulations continue to evolve with updated guidance on registration thresholds, input tax recovery, documentation, and audit procedures. The Federal Tax Authority has increased monitoring of VAT filings and refund claims, placing greater responsibility on businesses to maintain accurate records and timely submissions. Incorrect VAT treatment or non-compliance may lead to financial penalties and legal disputes. Businesses are advised to regularly review their VAT processes and seek professional advice to ensure full compliance with current regulations.
