/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
Under VAT in UAE, on certain notified supplies, the recipient or the buyer of goods or services is responsible to pay the tax to the Government, which is known as the reverse charge mechanism. In UAE VAT, the following supplies are under reverse charge:
To know more about reverse charge supplies, read VAT Reverse Charge Mechanism
The details of output VAT which the recipient is liable to pay on reverse charge supplies need to be furnished in box no 3 ‘Supplies subject to reverse charge provisions’ under ‘Sales and All other output’ section of VAT form 201. However, any import of goods subject to reverse charge that has been declared to UAE customs need to declared in box no 6 ‘Goods imported into UAE’. This implies that box no 3 will be mostly used to declare the details of services imported and the import of goods not declared via UAE Customs.
As shown in the above image, the recipient needs to declare only the net value the value of reverse charge supplies and applicable VAT amount. The value and the output VAT of the following type of reverse charge supplies should be included in the box no 3 ‘supplies subject to the reverse charge provisions’.
Please note, imports of goods into the UAE which are subject to the reverse charge provisions have been declared to UAE customs and therefore should be reported in Box 6 of the VAT Form 201.