1 July 2026 · VAT return
Recording Reverse Charge in Your VAT Return
Under reverse charge you record the transaction on both sides of your VAT 201: declare the output VAT on the imported supply and, where recoverable, claim the matching input VAT in the same period. When the input is fully recoverable the two offset and the net VAT effect is nil — but both entries must appear and be supported by documentation.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Report on both sides
A reverse charge is two matching entries, not one.
- Declare output VAT on the imported supply.
- Claim recoverable input VAT in the same period.
- The net effect is nil when input is fully recoverable.
- Where input is restricted, a real cost arises.
Keep the support
Under the 2026 rules, documentation replaces self-invoicing.
- Retain the supplier invoice and import documentation.
- Self-invoices are not required, but records are.
- Keep a schedule of RCM transactions per period.
- Reconcile RCM entries to your ledgers.
Related guides
Frequently Asked Questions
For finance teams reporting reverse charge VAT.
Where does reverse charge go in the VAT return?
You declare the output VAT on the imported supply and claim the recoverable input VAT in the same period, so both sides appear on the VAT 201.
Do I need to issue a self-invoice?
Under the 2026 rules self-invoices are not required, but you must retain the supplier invoice and import documentation.
When is reverse charge a real cost?
When the input VAT is not fully recoverable — then the output side is not fully offset.
Can Exiloz set up RCM reporting?
Yes. We build the schedule and report reverse charge correctly each period.
Report reverse charge correctly
Exiloz records your RCM transactions on both sides so your return is right.