New Reverse Charge Mechanism for Local Electronic Device Supplies in the United Arab Emirates

• The United Arab Emirates has introduced a new reverse charge mechanism for local supplies of electronic devices.
• The mechanism applies to devices that are intended to be resold or used for manufacturing or producing electronic devices.
• Suppliers are not required to calculate VAT on these supplies and should not include them in their VAT returns.
• The responsibility for VAT obligations related to the supply lies with the VAT registered recipient.
• Recipients must be registered for VAT and provide a written declaration stating their intention for the supply.
• Suppliers must store the written declaration and verify the recipient’s VAT registration.
• The new decision will take effect on 29 October 2023.
• Electronic device suppliers should assess the VAT implications and make necessary changes to their systems.

Source: kofax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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