Reverse charge places the responsibility for accounting for tax on the recipient for specified transactions. It is not a general VAT exemption. Any input tax recovery must be assessed separately, so output and input tax should not automatically be assumed to cancel each other.
Practical review checklist
- Identify imported services, goods and relevant domestic transactions.
- Confirm the specific conditions and supporting documentation.
- Reconcile the reporting entries and assess recoverability separately.
Check the rules for your transaction
Use the current official FTA guidance and legislation and VAT public clarifications. This introductory guide does not cover every exception. Confirm the requirements for your business and the period concerned.
Need help reviewing your records?
Explore BWMC VAT consultancy or contact the team with the transaction type, reporting period and issue you need to resolve.