United Arab Emirates: VAT Executive Regulation Amended

In brief

The UAE Cabinet has issued Cabinet Decision No. 149 of 2026, amending the Value Added Tax (VAT) Executive Regulation. Most changes take effect from 1 October 2026 and affect the treatment of composite supplies, employee-related costs, healthcare goods, cash payments, the Profit Margin Scheme and the Capital Asset Scheme. Revised input tax apportionment rules will apply from the first tax year commencing after 1 October 2027. Businesses should assess how the amendments affect existing VAT positions, contracts, policies, systems and supporting records.

Yasmeen Bader, Mid-Level Associate, has contributed to this legal update.

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