• Reverse Charge applies when a UAE VAT-registered person receives services from abroad.
• Input VAT can only be claimed when:
1. You receive a proper tax invoice (or issue one yourself).
2. The services are Concerned Services (used to make taxable supplies).
3. You account for output VAT in the same period.

✅ Case 1: Late Booking = Lost Input

You receive a UK consultant invoice on 10 July 2024 but book it in August.

• 🔻 Mistake: Booking it late = missed VAT period
• ✅ Fix: Claim input in July, or file a voluntary disclosure
  
  

✅ Case 2: No Tax Invoice from Pakistan Freelancer

Freelancer sends basic invoice (no VAT fields).

• 🔻 Risk: Input VAT not supported = denied recovery
• ✅ Fix: Issue a self-tax invoice in reverse charge format
  
  

❌ Case 3: KSA Vendor Charged 15% VAT

KSA software vendor adds their VAT.

• 🔻 Mistake: Claiming KSA VAT in UAE = illegal
• ✅ Fix: Ask vendor to treat supply as zero-rated export; apply reverse charge locally
  
  

❌ Case 4: Missed Reverse Charge in Q1

You didn’t account for reverse charge in Jan–Mar 2024.

• 🔻 Risk: Can’t claim input until output VAT is corrected
• ✅ Fix: File voluntary disclosures for each month before claiming input VAT

• Reverse charge VAT is not automatic — timing, invoices, and usage matter
• “Concerned Services” must be directly tied to taxable activities
• Self-invoicing is required when supplier invoice is non-compliant
• Late claims? Use voluntary disclosures to stay compliant

• Review vendor invoices to ensure input VAT compliance
• Prepare reverse charge entries and voluntary disclosures
• Train your team on self-invoicing and document handling
• Set up monthly checks so you never lose out on input VAT again

Reverse charge is one of the most misunderstood parts of UAE VAT. With the FTA actively auditing this area, the safest strategy is to get your documentation right, act fast, and disclose early. Fastlane ensures you're not just compliant — but audit-ready.