UAE amends the VAT Executive Regulations

The UAE has amended the VAT Executive Regulations, with most changes taking effect from 1 October 2026.

Key changes include:

• A stronger substance-based test for composite supplies;
• Revised rules for costs included to purchase price under the profit margin scheme;
• New conditions for recovering VAT on employee benefits and accommodation;
• A precise 30-day test for temporary presence in the UAE;
• A future restriction on VAT recovery for large cash payments; 
• Changes to zero-rated healthcare products; and
• An updated definition of a Capital Asset.

A new turnover-based method for input tax apportionment has also been introduced. It will apply from the first VAT tax year commencing after 1 October 2027.

Full analysis is available at the link.