- The Federal Tax Authority issued a clarification on VAT for imported services under the reverse-charge mechanism. Taxpayers do not need to issue self-tax invoices if they receive an invoice from foreign suppliers. If no invoice is received from foreign suppliers, taxpayers must issue self-tax invoices unless an exemption is granted. Input VAT recovery is allowed if imported services are used for taxable supplies and an invoice is received. Taxpayers can request an administrative exception if issuing self-tax invoices is impractical.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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