UAE VAT · THRESHOLDS
AED 10,000, 100,000 and 375,000: which suppliers you must verify
Not every purchase needs checking. FTA Decision No. 13 of 2026 uses three amounts to decide which suppliers and supplies are in scope, and which suppliers need extra checks. Here is how they fit together.
Want a quick answer for one supplier? Use our free threshold checker.
The three amounts
| Amount | What it does | Article |
|---|---|---|
| AED 10,000 | Supplies where the consideration, excluding VAT, is less than AED 10,000 may be disregarded… | 6(1) |
| AED 100,000 | …unless supplies from that supplier exceed AED 100,000 over the previous 12 months, or are expected to over the next 12. | 6(2) |
| AED 375,000 | Above this, per supplier over the previous or next 12 months, add a UAE bank confirmation, a review of public information and — where available — clients' recommendations. | 3(4) |
Step by step
- Add up per supplier. Total the supplies from each supplier over the previous 12 months, and estimate the next 12.
- Above AED 100,000 either way? Then the low-value exception does not apply to that supplier: verify the supplier and every supply, however small the invoice.
- AED 100,000 or less? Supplies below AED 10,000 (excluding VAT) may be disregarded. Supplies of AED 10,000 or more are still checked — and so is the supplier.
- Above AED 375,000 either way? Add the extra checks: bank confirmation, public-information review and clients' recommendations where available.
- Already verified in the previous 12 months? The supplier checks are not due again yet (Art. 5(1)); each new supply is still checked.
Previous and next 12 months
Both thresholds look backwards and forwards: the previous 12 months, or what you expect over the next 12. A new supplier with a large contract can therefore need the extra checks from the first invoice, and a supplier that has been small so far can lose the low-value exception as soon as you expect to buy more than AED 100,000 from it.
Keep your expectations on file
Because the “next 12 months” test depends on what you expect, note the basis for your estimate — a contract value, a budget or last year's pattern. It explains your choice of checks later.
Examples
| Supplier | Situation | Result |
|---|---|---|
| Courier service | 40 invoices of about AED 300; AED 12,000 a year | Each supply below AED 10,000 and the total far below AED 100,000: may be disregarded. |
| Cleaning company | Monthly invoices of AED 9,500; AED 114,000 a year | Above AED 100,000: verify the supplier and every monthly supply. |
| IT consultant (individual) | One project invoice of AED 25,000 | Supply of AED 10,000 or more: verify the individual (ID and a meeting) and the supply. |
| New logistics partner | Contract expected to be worth AED 500,000 next year | Above AED 375,000 for the next 12 months: full checks plus bank confirmation and public-information review from the start. |
Including or excluding VAT?
The AED 10,000 test is explicitly “exclusive of Value Added Tax”. The decision does not state the basis for the AED 100,000 and AED 375,000 totals. Agree the basis with your tax adviser, apply it consistently and note it in your verification policy.
How we apply them
When you upload your purchase list, our portal applies these tests to every supplier, shows you the reasoning — exception, standard checks or extra checks — and lets you add the amounts you expect for the next 12 months. Your fixed price follows from the suppliers that actually need checking. Check your estimated costs or read the full checklist.
LET US DO THE CHECKING
Supplier verification, done online.
Upload your purchase list, get a fixed price and we take it from there: we contact your suppliers, collect the documents, follow up twice and hand you a documented report. Packages from AED 990.
Sources
- FTA Decision No. 13 of 2026 on Measures, Procedures and Conditions required by Taxable Persons for the Verification of the Validity and Integrity of the Supplies before Deduction of Input Tax (unofficial English translation) — Federal Tax Authority. Article 6 (AED 10,000 and AED 100,000) and Article 3(4) (AED 375,000).
Please note
This guide explains the rules in plain language, based on the Federal Tax Authority's unofficial English translation; the Arabic text published in the Official Gazette prevails. It is general information, not tax or legal advice.
Next Horizons carries out and documents supplier verification work. We are not a registered tax agent and we are not approved by the FTA; decisions on input VAT stay with your business and its tax adviser.
Spotted something that needs correcting? Email rainier@nexthorizonsglobal.com.