The input tax recovery amount of reverse charging supplies should be reported in the box. The value-added tax form 201 10 in the tax return is as follows:

As shown in the figure above, the box numbered as the tenth in the VAT Form 201 allows you to recover the output VAT paid according to the reverse charging mechanism stated on pages 3, 6 and 7 of this form. To learn more about frame numbers. 3, 6 and 7, please read “Reverse Supplies in the VAT Refund Form 201” and “Products from the UAE entered in the VAT Refund Form 201”.

If you are entitled to recover some or all of the value-added tax (columns 3, 6 and 7) declared under the reverse charging regulations, it should include the net value of the expenses you are eligible to recover and the value-added tax applicable to those expenses. You should not report any VAT amounts due to unrecoverable reverse costs in these boxes.

For example, suppose you previously declared 100,000 AED and 5,000 AED output VAT consumables under the reverse charging consumables in Box No.. Article 3 of VAT Form 201. If you have the right to recover all value-added tax incurred under the reverse charging mechanism, you should enter the box number “. 10.”

In case you have the right to claim back part of the value-added tax (say 50%) generated under the reverse charging mechanism, please put it in the box. 10. You should declare 100,000 AED in the “Amount (AED)” column and 2500 AED in the “Recoverable Value Added Tax” column. In case you are not eligible to recover all (100%) of the VAT entered, you need to mention the full value of the supply in the “Amount (AED)” column, that is, 100,000 AED, but not in the “Recoverable” column. Mention any value added tax’.

The following are the types of consumables that need to be reported in the box number. 10 of VAT Form 201:

Services obtained from foreign suppliers are subject to standard VAT rates and you are eligible to receive input VAT. These should also be reported in the box. 3 of VAT Form 201

The received goods are subject to reverse charging regulations and have not been declared to the UAE Customs and you are eligible to recover the input VAT. Remember, these should also be reported in the box. 3

Local supplies are subject to reverse charging regulations, such as certain supplies in the oil and gas industry, and you are eligible to charge any value added tax for this. These should have been reported in the box number. 3

For goods imported into the UAE through UAE Customs that have been reported in your customs declaration, you are eligible to claim any VAT. These should also be reported in Box 1. 6 and/or box number 7

Import goods from agents on behalf of unregistered persons. These should also be reported in Box 1. 6 and/or box number 7

The essentials of VAT form 201 requiring VAT input on the reverse charging power supply

Make sure that the reverse charging power source for the input VAT is reported in box No. 3, 6 and 7 of VAT Form 201

Make sure to mention the value entered in “Recoverable VAT” within the scope that meets the eligibility requirements

If you are prohibited from recovering all value added tax incurred on your supplies, please make sure to mention the value of the supplies in the “Amount (AED)” column

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