Ministerial Decision No. 262 of 2023 establishes the specific criteria for determining what constitutes 'Pieces and Parts' of electronic devices. This Decision directly implements Cabinet Decision No. 91 of 2023, concerning the application of the Value Added Tax (VAT) reverse charge mechanism on such goods among registrants in the UAE. As per Article 3, parts are included if they are necessary for the device's manufacturing, production, or normal operation, such as chargers and power cords. However, it explicitly excludes accessories that only enhance functionality but are not essential for operation, and items such as SIM cards.
This is not an Official Translation:
Criteria to be Followed in the Determination of Parts and Pieces of Electronic Devices
Ministerial Decision No. 262 of 2023
Issued 25 Oct 2023 - (Effective from 30 Oct 2023)
Minister of State for Financial Affairs has decided:
Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax
Authority, and its amendments,
Federal Decree-Law No. 28 of 2022 on Tax Procedures,
Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments,
Cabinet Decision No. 52 of 2017 on Executive Regulation of the Federal Decree- Law No. 8 of 2017 on Value Added Tax, and its amendments, and
Cabinet Decision No. 91 of 2023 on the Application of the Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of Value Added Tax.
Article 1 - Definitions
The definitions of the Federal-Decree Law No. 8 of 2017 and Cabinet Decision No. 91 of 2023 referred to above shall apply to this Decision, in addition the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:
Executive Regulation
:
Cabinet Decision No. 52 of 2017 on Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments.
Pieces and Parts
:
Pieces and Parts related to Electronic Devices.
Article 2 - Scope of this Decision
This Decision specifies the criteria that should be followed in determining the Pieces and Parts related to Electronic Devices, in accordance with the provisions of the Cabinet Decision No. 91 of 2023 referred to above.
Article 3 - Criteria for Determining Pieces and Parts related to Electronic Devices
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