Accounting for UAE VAT Reverse Charge on Imported Goods & Services

By LedgerMapz Tax & Accounting Engineering Team • Reviewed against official CBIC / FTA / IRS rules • Back to Knowledge Hub

When a UAE VAT-registered business purchases software, consulting, or goods from a supplier outside the UAE, the recipient accounts for 5% Output VAT under the Reverse Charge Mechanism in Box 3 of Form 201 and simultaneously claims the corresponding Input VAT in Box 10 (if attributable to taxable supplies).