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