What is Reverse charge mechanism?

The idea behind reverse charge mechanism is that this would be the amount of VAT one would have to pay should that goods or services be bought it in the UAE.

Hi

Reverse Charge Mechanism - Applies as, When you Import Goods from any Other Country from a supplier who does not have a Registered Business in the country where the goods has been supplied. You will pay the applicable Tax for the Value of Imported Goods to the Government and the same you will recover from the Final Consumer.

The Entries will be passed in your Books of accounts will be Input VAT (Import) and Output VAT (Sales). The same will be Nullified in the Consolidated VAT Statament.