- The United Arab Emirates (UAE) has implemented the Reverse Charge Mechanism (RCM) applicability on mobile devices via Cabinet Resolution No. (91) of 2023, which could have an effect on the electronic industry.
- The Public Clarification intends to clarify the purpose of the updates in the legislation, the goods in scope, and the practical implications of the compliance requirements introduced.
- The scope of Cabinet Decision No. 91 is restricted to mobile phones that operate through wireless transmission.
- The Decision also applies to computer devices whereby no distinction applies if such computer devices operate through wireless transmission or require physical means.
- If a VAT-registered supplier supplies any of the electronic devices defined in Cabinet Decision 91 to a VAT-registered recipient, and the recipient intends to resell or use them to produce or manufacture electronic devices, the RCM rules apply.
- The provisions of Cabinet Decision No. 91 do not apply in case the supplier, registered for VAT, makes a direct or indirect export of Electronic Devices.
Source: hlbhamt.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.
