Federal Decree-Law No. 16 of 2025 Amending the VAT Law

Amends the VAT Law (Federal Decree-Law No. 8 of 2017): clarifies reverse-charge self-invoicing, introduces a five-year limitation period to claim excess recoverable input tax, adds Article 54 provisions denying input tax recovery where connected to tax evasion, and repeals the former Article 79(bis) limitation provision. Effective 1 January 2026; also the legal basis referenced in Public Clarification VATP046. Issued 25 November 2025; publish date 3 December 2025.

What firms should do

Yes — review input tax recovery claims and evidentiary documentation against the new five-year limit and evasion-linked denial rule

Regulator: Federal Tax Authority
Type: Cabinet Decision
Status: Enacted
Published: 3 Dec 2025
Takes effect: 1 Jan 2026
Reference: Federal Decree-Law No. 16 of 2025 (technically primary legislation, not a Cabinet Decision — closest available Source_Type used)
Topic: VAT
Impact: High

Read it on the regulator's website

Found automatically on the regulator's website and summarised by AI by Arakan Lexara. Not legal advice; check the official source before relying on it.

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