The UAE Federal Tax Authority (FTA) has issued an important clarification on VAT compliance for concerned services—i.e., services received from abroad that are subject to VAT under the Reverse Charge Mechanism (RCM).
The key takeaway: taxable persons are not required to issue a self-invoice if they retain proper documentation from the overseas supplier.
We have prepared a detailed VAT Alert summarizing this clarification — you can download it via the link below.
This clarification is a timely reminder of how critical robust VAT compliance processes are—especially for businesses regularly dealing with cross-border transactions. Delayed filings, incomplete documentation, or inconsistent tax treatment can result in penalties and cash flow impacts.
New: Comprehensive VAT Compliance Support Now Available
We’re pleased to announce the expansion of our tax services to include end-to-end VAT compliance support—ensuring accuracy, efficiency, and peace of mind every tax period.
Our Support Includes:
1. Kick-off and Setup
A structured onboarding session with your team to understand your transaction flows, presentation of past VAT returns and agree on a clear compliance schedule
2. Reports & Documents Required
We guide you in preparing:
-
A revenue report
-
An expenses report
-
Draft VAT return
-
Selected supporting documents, including tax invoices for standard-rated supplies, zero-rated supplies, and standard-rated expenses
3. VAT Return Review – First and Ongoing
We perform a detailed review of your return, including:
- Review the entity’s transactions, including supplies, expenses, and RCMs
- Review input tax recoverability eligibility
- Review supporting documentation (e.g., tax invoices and tax credit notes)
- Review the prepared reconciliation between the VAT return reports
- Conduct a high-level review of policies (e.g., phones, insurance, cars)
- Track the entity’s VAT compliance progress based on adherence to our recommendations
- Ensure adaptation to legislative changes in VAT return reviews.
Our tailored VAT return approach assures that our proposal meets your requirements, with a responsive, proactive, and insightful team dedicated to adding real value to the strategic and operational management of your tax affairs.
