[Global IDT Insights] UAE Issues VAT Amendments Effective 01-01-2026 & Others

Editorial Team – [2025] 181 taxmann.com 762 (Article)

Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.

1. UAE Issues VAT Amendments Effective 01-01-2026

The United Arab Emirates (UAE) has issued amendments to its Value Added Tax (VAT) framework. The amendments are intended to simplify tax procedures, ensure transparency, and strengthen governance. These provisions will take effect from 01-01-2026.

The amendments focus on procedural simplifications, treatment of reverse charge transactions, input tax deductions, and time limits for reclaiming excess refundable tax. The Executive Regulation specifies documentation and compliance requirements under these amendments.

Key aspects of this update include:

(a) Relief from issuing self-invoices under reverse charge mechanism – Taxable persons are not required to issue self-invoices when applying the reverse charge mechanism. They must retain supporting documents for supply transactions as specified by the Executive Regulation. This ensures that relevant documentation is available for review while streamlining procedural requirements.

(b) Time limit for reclaiming excess refundable tax – A five-year period is established for submitting requests to reclaim any excess refundable tax following reconciliation. After this period, the right to reclaim expires, regulating the review and processing of refunds.

(c) Denial of input tax deduction in tax-evasion arrangements – The Federal Tax Authority (FTA) may deny input tax deductions if a supply is determined to be part of a tax-evasion arrangement. Taxpayers must verify the legitimacy and integrity of supplies before claiming input tax, in accordance with procedures set by the FTA.

Source – Official Source

2. EU Imposes Anti-dumping Duties on Steel Track Shoes

The European Union (EU) has imposed anti-dumping measures on imports of steel track shoes and screws without heads originating in the People’s Republic of China. The measures follow investigations that determined these products were being imported at dumped prices, causing injury to the EU industries producing the same goods.

The duties aim to restore fair competitive conditions in the EU market and apply to specific categories of steel track shoes and headless screws, as identified by the investigations.

Key aspects of these measures include – Anti-dumping duties on steel track shoes – A definitive anti-dumping duty of 62.5% has been imposed on imports of steel track shoes from China. Provisional duties have been collected since 22-04-2025. Steel track shoes are components used in tracked equipment for the construction and mining sectors, such as bulldozers and excavators. The EU industry producing these products is primarily located in Italy, valued at approximately €30 million, and employs 190 people.

Source – Anti-dumping Duty – Steel Track Shoes

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