1 July 2026 · Examples
Reverse Charge Examples & Scenarios
Common UAE reverse charge scenarios include buying software subscriptions or consultancy from a foreign supplier, and importing certain goods. In each case the UAE recipient self-accounts for VAT — declaring output VAT and, where recoverable, matching input VAT. These worked examples show how the entries offset and when a real cost can arise.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Software and consultancy from abroad
The classic imported-services examples.
- A foreign SaaS subscription: self-account for VAT under RCM.
- An overseas consultant's fee: same treatment.
- Declare output VAT and recover input VAT if allowed.
- Net effect nil where input is fully recoverable.
Imported goods and restricted input
Goods and non-recoverable inputs change the outcome.
- Imported goods can attract VAT at import/RCM depending on the case.
- If input VAT is blocked, RCM creates a real cost.
- Mixed/partly exempt businesses must apportion.
- Document each scenario for the FTA.
Related guides
Frequently Asked Questions
For businesses wanting concrete reverse charge examples.
Does reverse charge apply to foreign software?
Typically yes — a foreign software or SaaS subscription bought by a UAE registrant is usually self-accounted under RCM.
What about overseas consultants?
Consultancy from a supplier outside the UAE is a classic imported-services RCM case.
When does RCM cost me money?
When your input VAT is not fully recoverable (e.g. partly exempt activity), the output side is not fully offset.
Can Exiloz review our RCM scenarios?
Yes. We map your cross-border purchases and apply the correct treatment.
Apply reverse charge to your real costs
Exiloz reviews your cross-border purchases and applies the right VAT treatment.