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Reverse charge on imports and services from abroad

Quick answerIn MAJA Books tick "This transaction is subject to reverse charge" on a bill from a supplier outside the UAE (with 0% VAT on its lines); MAJA self-accounts the VAT and reports it in Box 3 (services, no customs declaration) or Box 6 (goods through customs on an import order), and recovers it in Box 10 unless the input tax is blocked.
Where: MAJA Books → Purchase → Bills → reverse charge box; VAT & Corp. Tax → VAT Return boxes 3, 6 and 10Who: Anyone whose role may create bills and open VAT

Steps — on the bill

  1. Create the bill from the foreign supplier as usual (Purchase → Bills).
  2. Set the VAT on its lines to 0%.
  3. Under the totals, tick This transaction is subject to reverse charge.
  4. If the input tax cannot be recovered, also tick Input VAT is BLOCKED — it cannot be recovered, so it becomes cost.
  5. Save the bill.

Steps — on the return

  1. Click VAT & Corp. Tax, set the period and click Calculate VAT.
  2. Read Box 3 (reverse charge — services from abroad, no customs declaration), Box 6 (goods imported through customs) and Box 10 (reverse charge — recoverable).
  3. Read the note under the outputs: it shows the reverse charge for the period split between Box 3 and Box 6.

What MAJA does for you

  • Posts the reverse-charge VAT as both output and input tax, so it nets to nothing unless it is blocked.
  • Goods on an Import Order are self-accounted at goods receipt and go to Box 6. Every other reverse-charged purchase goes to Box 3.

Good to know

  • A bill marked reverse charge must not carry VAT on its lines. If it does, MAJA refuses: a supplier outside the UAE cannot charge UAE VAT.
  • Reverse charge only applies while your company is VAT-registered on the bill date. Otherwise MAJA refuses and asks you to record the bill with no VAT.

Related guides

Calculate your VAT return (FTA Form 201)Set your VAT registration, TRN and filing periodPrint the VAT Working Report (return with annexures)
People also ask
  • How do I record reverse charge VAT in MAJA Books?
  • Where does reverse charge show on the MAJA VAT return?
  • How do I account for VAT on services from a foreign supplier in MAJA?
  • What is the difference between Box 3 and Box 6 in MAJA?
Still stuck? In the app, tap the ? button at the top and choose Chat with MAJA support — the screen you are on goes with your message and the reply comes to the same place (within one working day). Or write to support@majabooks.com, or ask MAJA's assistant (the round button at the bottom right of MAJA Books).