This Decision establishes a domestic reverse charge mechanism for the supply of Electronic Devices, including mobile phones, computers, and tablets, between VAT-registered businesses in the UAE. It shifts the VAT accounting responsibility from the supplier to the registered recipient if the recipient intends to resell the devices or use them in manufacturing. As per Article 2, the application of this mechanism is conditional upon the recipient providing written declarations of their intent and VAT registration status to the supplier, who must verify these details. This is an exception to the standard VAT rules under Federal Decree-Law No. 8 of 2017.
This is not an Official Translation:
Application of the Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of Value Added Tax
Cabinet Decision No. 91 of 2023
Issued 25 Aug 2023 - (Effective 60 days after publishing in the Official Gazette)
The Cabinet has decided:
Having reviewed the Constitution,
Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments;
Pursuant to what was presented by the Minister of Finance and approved by the Cabinet.
Article 1 - Definitions
The definitions contained in the Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments, shall apply to this Decision, as an exception to that, the following expression shall have the meaning assigned against it, unless the context requires otherwise:
Electronic Devices
:
Mobile phones, smart phones, computer devices, tablets and pieces and parts thereof.
Article 2 - Application of the Reverse Charge Mechanism on Electronic Devices
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