UAE VAT reverse charge: a practical review checklist

How the reporting works

Under reverse charge, the recipient accounts for the output tax. Input tax recovery depends on eligibility; the two amounts do not automatically cancel.

The FTA return guide places qualifying reverse-charge supplies in Box 3. Imports declared through UAE Customs are reported separately in Box 6. Eligible recovery of reverse-charge VAT is reported in Box 10.

Check the current rules for the particular supply, place of supply, tax period and recovery conditions before filing. Domestic reverse-charge categories have their own requirements.

Source: FTA VAT Returns User Guide, Boxes 3, 6 and 10. See also current FTA VAT legislation.

Prepare a review pack

• Keep the supplier invoice, transaction description and evidence of receipt.
• Record the currency, conversion basis and relevant transaction dates.
• Document why the selected tax treatment applies.
• Keep output tax and recoverable input tax separately visible in the ledger.
• Reconcile the return figures to source documents and retain the review notes.

This checklist supports a discussion with your accountant; it does not determine the treatment of an individual transaction.

What to test in a software demo

Use one accountant-approved example. Trace the supplier bill into the ledger and tax report, then demonstrate a correction. Ask the vendor to confirm tax-code behaviour and supported return mappings for your edition.

Try this with your own workflow

Bring a sample invoice, a stock question and your reporting needs. Ask the team to confirm the edition, devices, integrations and pricing for your business.