The UAE is changing the VAT rules from 1 January 2026 to make things simpler for businesses and residents. Companies using the reverse charge system no longer have to create self invoices but still need to keep records. People and businesses have five years to claim any VAT refunds. The Federal Tax Authority can deny VAT deductions if a transaction looks like it is meant to avoid tax. These changes aim to make VAT easier to follow and fairer for everyone. The updates cover invoices, refunds, and stricter rules against misuse of the system.
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