Flag-it: Supplier Due Diligence for FTA Decision No. 13 of 2026

The UAE Federal Tax Authority's Decision No. 13 of 2026 introduces new verification requirements for businesses claiming VAT input tax. Under Article 54 bis of the VAT Law, input tax recovery may be denied where a business knew, or should reasonably have known, that a transaction was connected to tax evasion. The decision sets out the due diligence measures expected from businesses, including supplier identity verification, business legitimacy checks, transaction reviews, and documented internal policies. These obligations apply from the first supplier engagement and must be revisited periodically based on prescribed thresholds and review cycles. 

To help organisations manage these requirements efficiently, CLA Emirates has developed Flag-it, an automated supplier due diligence and compliance register. The platform evaluates supplier thresholds, tracks verification deadlines, maintains evidence records, enforces segregation of duties, and provides a clear audit trail for every determination. By combining regulatory expertise with practical automation, Flag-it helps businesses demonstrate compliance while reducing the administrative burden of ongoing supplier verification. 

Implemented as an advisory-led solution rather than a standalone software deployment, Flag-it supports businesses through policy development, supplier onboarding reviews, compliance assessments, and ongoing monitoring. Built and maintained by CLA Emirates in the UAE on Microsoft Azure, the solution provides a structured framework to help organisations meet the expectations of FTA Decision No. 13 while protecting their VAT recovery position.

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