Frequently Asked Questions on VAT

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Under what conditions is the reverse-charge mechanism applicable on local supply?

For the reverse-charge mechanism to be applicable on local supply, the supplier must:

  • Meet the eligibility criteria mentioned below to apply for the domestic reverse-charge mechanism.

    • The applicant is required to be a taxable person.

    • The VAT that is due on the goods or services supplied to the applicant must be completely recoverable by the applicant as input tax.

    • The applicant must provide evidence to prove that the total sum of their intra-GCC supplies and exports exceeds 50% of the total value of their supplies.

    • The applicant must provide credible evidence to show that they would be in a position to owe net tax and that this would impact their financial position.

  • Submit an application to the NBR and receive the NBR’s approval

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