Calculation of Tax under the Reverse Charge Mechanism on import of Concerned Goods or Concerned Services – Article 48 – VAT Executive Regulations

Article 48 – Calculation of Tax under the Reverse Charge Mechanism on import of Concerned Goods or Concerned Services

1. For the purposes of import of Concerned Goods, Clause 1 of Article 48 of the Decree-Law shall apply if the following conditions are met:

1. At the time of Import, the Taxable Person can demonstrate that they are registered for Tax.
2. The Taxable Person has sufficient details for the Authority to verify the Import and the Tax which shall be due on the Import and is able to provide these as required.
3. The Taxable Person has provided the Authority with its own Customs registration number issued by the competent Customs Department for that Import, such Customs Departments to verify the
   Import subject to the rules set by the Authority.
4. The Taxable Person has cooperated with, and complied with any rules imposed by, the Authority in respect of the Import.

2. Where the conditions mentioned in Clause 1 of this Article are not met, the Taxable Person shall account for Tax in respect of the Import in accordance with Clause 1 of Article 50 of this Decision.

3. Where a Taxable Person who has a Place of Residence in the State receives a supply of Goods or Services with a Place of Supply in the State, from a supplier who does not have a Place of Residence in the State and does not charge Tax on that supply, the supply shall be treated as being of Concerned Goods or Concerned Services subject to Clause 1 of Article 48 of the Decree-Law.

4. Where Clause 1 of Article 48 of the Decree-Law applies, the Taxable Person must:

a. Account for Tax on the value of the Concerned Goods or Concerned Services at the rate which would be applicable if the supply of the Concerned Goods or Concerned Services was made by a Taxable Person within the State.

b. Declare and pay the Due Tax in the Tax Return which relates to the Tax Period in which the Date of Supply for the Concerned Goods or Concerned Services took place.

5. Where a Taxable Person accounts for Due Tax in accordance Clause 1 of Article 48 of the Decree-Law, the Taxable Person shall keep the following documents relating to the supply:

a. The supplier’s invoice showing details and the Consideration paid for the Concerned Goods or Concerned Services.

b. In the case of Concerned Goods, a statement from the relevant Customs Department showing details and the value of the Concerned Goods.