Reverse Charge Mechanism (RCM) Practical Explanation | Imports of Goods / Services | VAT UAE FTA TAX

[@farrukhsami7851]

Can u make one video by doing practical entry in any software how to do entry

[@rajabconstructionco.9973]

Very good information helpful and great advice excellent explanation valuable video thanks you God bless you always brother sir jai hind 🇮🇳 I am from India 🇮🇳 jazak Allah hu khair brother

[@MSIAuditors]

Always welcome

[@rasiyap.k2728]

Aa in RCM we are claiming it back by putting in box 10, can we get the vat on customs paid by putting again in box 9?

[@MSIAuditors]

Normally the VAT prepopulated at import is including the VAT on customs. This can be claimed back if it is attributable to taxable sales.

[@bleesedhour]

Hi good day, please I have a question I missed to reverse the amount in box 10 in filling of the vat return, company is a vat registered. Can I claim the same in the next filling in row 10 ?

[@MSIAuditors]

That is a good question. If the VAT impact of it is under 10,000 AED, you may correct it in the next VAT return.

[@bleesedhour]

@@MSIAuditors yes thank you so o much 👍

[@muhammedajsal997]

Hi could please tell how do we claim the vat paid at the time of clearance of good from customs. Since its vat is already paid at the time of import and if we show vat as input and output, then it means we are claiming the input vat right. Could please explain on this

[@financenaasgroup]

Hi , I am filing a vat returns on behalf of a very small startup of general trading. we have imported health suppliments from foreign suppliers on DDP rates. when filing vat returns row 6 is not populating any amount. can i just ignore the imported goods and not report to fta?

[@MSIAuditors]

If any items are imported to the UAE mainland, and the foreign supplier is not registered for VAT, RCM must be done. If this is not being pre-populated, then it must be added as adjustments in the next row. -MSI Team

[@muhammadakbar9049]

Hi. How the vat paid on import of goods made before vat registration will be treated in the first vat rerurn filing of a company? In which serial number it will be posted and would it be subject to RCM?

[@mohammedabdulsamad1833]

I am also looking for the same answer. please let me know if you got the response

[@BestMovieClip99]

Watching and explaining from laptop 😃😃. But good 👍

[@hadislibrary1325]

Sir Plz explain if imports from USA etc is 204606 custom duty is 10330 vat is 10846 now if there is no sales and Vat on expenses is 10000 can we claim 10846 along with 10000 on expenses or not? And if we can reclaim it under RCM where we will enter the amout is it will be in the adjustment column in box 9. Plz reply urgently

[@ahmedrafaa273]

Hey, Good morning sir, Could you please explain how to register a Group VAT and how its work? Please advise. Thank you. Regards Ahmed

[@hadipatel5344]

Can we claim RCM for custom duty or excise duty paid??

[@MSIAuditors]

RCM on the VAT can be claimed if it is not related to an exempt supply.

[@hadipatel5344]

@@MSIAuditors thnks. But I want to know about custom duty claiming ? When we import thr goods in Uae

[@MSIAuditors]

@@hadipatel5344 Customs duty can only be claimed in the case of import for re-export.

[@hadipatel5344]

@@MSIAuditors thnk you..👍

[@Abdulhadi-vz5bo]

Can you elaborate RCM in case google Ireland ads services

[@MSIAuditors]

If VAT is charged for the services by google, not RCM to be recorded, otherwise the RCM needs to be recorded.

[@BestMovieClip99]

@@MSIAuditors didn't get the point.

[@MSIAuditors]

@@BestMovieClip99 The point here is that, if there is someone in UAE to account for the VAT for the supply in UAE, then No RCM is to be done. RCM comes into play only when there is nobody here to account for the VAT. Hope that makes sense. -MSI Team

[@shivangigarg6963]

Where to report import and export exempted supplies?

[@MSIAuditors]

Can you clarify your question with an example?

[@muhammadhabubacker8890]

End of the video you mentioned an additional 5% payable for the import of the car. Normally any import of goods crossing the border will pay a VAT @ 5%. Does it mean the total VAT payable will be 5% + 5% = 10%?

[@MSIAuditors]

No it just means you will not be able to claim back the VAT that was paid.

[@muhammadhabubacker8890]

@@MSIAuditors thanks for the reply

[@CAamritasingh]

What if in Oman we are receiving goods from our Dubai entity with no vat on invoices. Our dubai entity is purchasing those from china.

[@MSIAuditors]

If the goods were stored in the mainland after import from china, then yes RCM will need to be conducted. -MSI Team

[@CAamritasingh]

@@MSIAuditorsthanks for the quick response. Our Dubai entity already recording vat on those invoices. Then also in Oman we need to show those as RCM??

[@MSIAuditors]

@@CAamritasingh RCM is to be recorded in each country. So far the GCC VAT has not been integrated yet.

[@CAamritasingh]

@@MSIAuditors Thank you

[@Nabeelaj]

As a software company registered in Dubai, we invoice our UAE-based customers with 5% VAT. Additionally, we outsource software development work for our Dubai-based clients to India, receiving invoices from our Indian suppliers for these services. I want to know how to correctly account for these supplier invoices with the Federal Tax Authority (FTA) in the UAE.

[@shivangigarg6963]

Hi, thanks for the video on this topic. Can you please guide me on zero-rated import of service. As per UAE VAT law, "Services received from foreign suppliers which are subject to the zero rate of VAT" should be reported in row 3 and RCM output tax is payable on such supply. On zero-rated supplies, recipient is required to pay tax? Source: tax.gov.ae/DataFolder/Files/Pdf/VAT%20Returns%20User%20GuideEnglishV40%2015%2008%202021%20SEP2021.pdf

[@MSIAuditors]

Any RCM you mention in the output VAT section can be claimed back in the last row if it is allowable.