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Frequently Asked Questions on VAT

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Under what conditions will domestic reverse charge not be applicable?

The VAT rules on domestic reverse charge will not be applicable under the following conditions:

  1. When the supply includes goods or services other than the concerned goods like refined oil, processed/unprocessed natural gas, other hydrocarbons, gold, or diamonds.
  2. When the recipient of the goods does not give a written confirmation stating that the acquired goods are for resale, before the date of supply.
  3. When the recipient hasn’t given a written confirmation to the supplier stating that their business is tax registered, before the date of supply.
  4. When the supplier has not checked whether the recipient’s business is tax registered following the rules set by tax authority prior to the date of supply.
  5. When the taxable supply is zero-rated.
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