VAT return will include the value of supplies of goods and services received which are subject to VAT under the reverse charge mechanism. They are to be reported in Box 3 of Form 301, VAT return.
VAT payable on import of services where the customer (recipient of services) is required to pay VAT, will include details of taxable amount and VAT in this box. However, VAT paid on goods by the recipient of goods to the UAE customs will not be declared here since these will be reported in box 6. The only circumstance where a purchase of imported goods should be reported in this box would be where the movement was not declared via UAE Customs for some reason.
Things to be included in box 3 relating to reverse charge are:
- Services received from foreign suppliers which are subject to the standard rate of VAT
- Services received from foreign suppliers which are subject to the zero rate of VAT
- Goods received which are subject to the reverse charge provisions and have not been declared to UAE customs (e.g. through an import declaration)
- Local supplies subject to the reverse charge provisions (e.g. specific supplies within the oil and gas industry)
To be excluded in box 3 relating to reverse charge are:
- Imports of goods into the UAE which are subject to the reverse charge provisions but which have been declared to UAE customs and therefore will be reported in Box 6 of the VAT Return.
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