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:
- When the supply includes goods or services other than the concerned goods like refined oil, processed/unprocessed natural gas, other hydrocarbons, gold, or diamonds.
- 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.
- When the recipient hasn’t given a written confirmation to the supplier stating that their business is tax registered, before the date of supply.
- 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.
- When the taxable supply is zero-rated.