Understanding the reverse charge mechanism is crucial for businesses that are engaged in importing goods into the UAE as the provision starkly differs from other clauses in the UAE VAT Law. Normally, businesses charge the VAT from the end customers and pay it to the Federal Tax Authority (VAT) later. However, under the Reverse Charge Mechanism, the responsibility of paying the tax to the authority shifts to the buyer.
Source: jcauaeaudit.com
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