1st October 2026 and AED 55,000
The VAT cash-payment threshold is pending
The compliance response should not be.
Cabinet Decision No. 149 of 2026 inserts Article 54(3) into the UAE VAT Executive Regulation. From 1 October 2026, input VAT may not be recoverable where a supply exceeds the amount to be prescribed by the Minister and the consideration is paid, or intended to be paid, in cash. FTA Decision No. 13 of 2026 also requires taxable persons to verify the validity and integrity of supplies before deducting input tax. Pending the Ministerial Decision, AED 55,000 could be a sensible interim internal alert benchmark. This is not a proposed VAT threshold; it is derived from the UAE AML/CFT framework, under which customer due diligence is required for occasional transactions of AED 55,000 or more, including apparently linked transactions. For dealers in precious metals and stones, the trigger specifically applies to cash transactions of AED 55,000 or more. Flag, aggregate, document and escalate cash settlements before claiming input VAT.
