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Frequently Asked Questions on VAT

Last updated on 06 April, 2018


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What is Reverse Charge Mechanism (RCM)?

The Reverse Charge Mechanism helps taxpayers to account for their input tax that has not been paid to the government before that period’s tax filing.

In the case of services, the Reverse Charge Mechanism is applied when a VAT-registered business imports a taxable service. The buyer is required to account for input VAT paid on the transaction.

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