Reverse Charge Mechanism (or RCM) is a treatment of VAT that comes into play in the case of an import of service or goods. This may be a bit confusing for businesses especially start ups who face challenges when filing their VAT returns.

Reverse charge mechanism or RCM is mostly only for disclosures however, Filing VAT returns correctly is important to avoid penalties. Being compliant with the tax regulations is important.

In an effort to bring international best practices to the UAE economy, the central bank has announced amendments to the new transaction law.

We have already touched upon this in our previous blog. This updated law will come into effect on January 2nd 2022. Changing regulation surrounding bounced cheques will help the SME’s with their cash flow management.

These updated laws on bounced cheques will bring up UAE’s business environment up to international standards. This will make the UAE a much more attractive place to invest in.