10 September 2026 · Reverse Charge
Reverse Charge on Imported Digital Services
When a UAE business buys digital services from an overseas supplier (foreign SaaS, ad platforms, cloud tools) it self-accounts for the VAT under the reverse charge mechanism: it declares the output VAT and recovers it as input VAT in the same return where eligible, so the net effect is often nil. Under the 2026 VAT changes a formal self-invoice is no longer required for the reverse charge, but you must keep evidence of the imported service.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Declare and recover
You account for both sides.
- Declare output VAT on the import.
- Recover input VAT where eligible.
- Often a nil net effect.
- Applies to foreign SaaS, ads, cloud.
No self-invoice
A welcome simplification.
- Formal self-invoice no longer required.
- Keep evidence of the imported service.
- Report it correctly on the return.
- Align with the reverse-charge guide.
Related guides
Frequently Asked Questions
For businesses buying overseas digital tools.
Do I pay VAT on foreign SaaS?
You self-account under the reverse charge, declaring output VAT and recovering it as input VAT where eligible, often with a nil net effect.
Is a self-invoice required in 2026?
No. Under the 2026 changes a formal self-invoice is not required for the reverse charge, but keep evidence of the service.
What imports are caught?
Imported digital services such as foreign software, ad platforms and cloud tools.
Can Exiloz handle the reverse charge?
Yes. We account for the reverse charge on your overseas digital purchases.
Handle the reverse charge
Exiloz self-accounts for VAT on your imported digital services.