How to enable RCM for VAT in UAE?

You've come to the right place! I'm here to help you enable RCM for VAT in UAE in no time, @usersanthosh.

In QuickBooks Online - United Arab Emirates, a default set of VAT codes are created for you automatically. These represent the most commonly-used VAT rates. You can add additional tax rates or deactivate tax rates at any time. 

Follow these steps to enable the reverse charge:

1. Go to the Taxes menu.
2. Click Edit VAT and select Edit rates.
3. If you can't find the Reverse Charge tax name from the list, click the Gear icon at the top of the Action column. Then, select Include inactive.
4. Turn on the RC Reverse Charge switch button.
5. Click the RC Reverse Charge tax name to see the description. You'll see that the default rate is -5%.
   

Once done, it will allow you to use this rate on your transactions. To enable this rate for a particular product or service, follow the instructions below:

1. Click the Gear icon at the top, then choose Products and Services.
2. Click on the New button.
3. Select a product/service type.
4. Enter the name of the product/service.
5. Select a category.
6. Check the box which says " I purchase this product/service from a supplier."
7. Enter the purchase cost.
8. Select an expense account.
9. Under the Purchase Tax drop-down, select RC Reverse Charge 0%.
10. Click Save and close.

You can also check out the write up about the VAT feature update FAQ that I'm sure you'll find helpful. 

Stay in touch if you have other questions or concerns about the RCM in QuickBooks Online. We're always here to assist you every step of the way. Thanks for joining us today and have a lovely weekend.