Page 65 - Focus Group

The BALANCING act of

Reverse Charge Mechanism

A question initially came to my mind under reverse these as required.
charge mechanism- B2B import into UAE from
outside GCC will be at reverse charge mechanism c. The Taxable Person has provided the Authority
(wherein recipient is required to pay VAT). When an with its own Customs registration number issued
amount is mentioned on both sales and purchase by the competent Customs Department for that
side what is its relevance? Will there be a situation Import, such Customs Departments to verify the
where the reverse charge in sales (for goods/ Import subject to the rules set by the Authority.
services) is not equal to purchases/ input claim d. The Taxable Person has cooperated with, and
under Box 10 of the vat return? complied with any rules imposed by, the Authority
in respect of the Import.
For the purposes of import of Concerned Goods,
Clause (1) of Article (48) of the Decree-Law shall Further, Article 50(4) of the VAT Executive
apply if the following conditions are met: Regulations provides that “where a person, who
is not registered for tax, imports goods using an
a. At the time of Import, the Taxable Person can
demonstrate that they are registered for Tax. agent who acts on behalf of the person for the
purposes of importing the goods into the State
b. The Taxable Person has sufficient details for the and who is registered for tax in the State, the
Authority to verify the Import and the Tax which agent shall be responsible for the payment of the
shall be due on the Import and is able to provide tax in respect of the import of goods.”

The Institute of Chartered Accountants of India (Dubai) Chapter NPIO TAX JOURNAL 2020 65