Goods supplied from Designated Zone to Mainland (Dubai In said the city ...) For the purpose of the VAT, a Designated Zone will be treated as being outside the State. ... The supplier who is buying goods from the Designated Zone will have to pay VAT on a reverse charge basis, similar to import of goods from other countries. What is The RCM ? The Reverse Charge moves the responsibility for the reporting of a VAT transaction from the seller to the buyer of a good or service. ... When a transaction is subject to Reverse Charge, the recipient of the goods or services reports both their purchase (input VAT) and the supplier's sale (output VAT) in their VAT return.