Public Clarification on Reverse Charge Application for Electronic Devices in the UAE

• The Federal Tax Authority issued a public clarification on the reverse charge application for electronic devices in the United Arab Emirates.
• The clarification states that Cabinet Resolution No. (91) of 2023 regarding the application of reverse charge mechanism on electronic devices will be effective from October 30, 2023.
• The clarification provides guidance on the application of reverse charge on electronic devices, including mobile phones, computers, tablets, and e-readers.
• Suppliers are responsible for assessing if their goods fall under the reverse charge mechanism.
• Compliance requirements for suppliers include issuing tax invoices, verifying customer VAT registration, and accounting for output tax if the necessary declarations are not provided.
• Customers must provide two declarations to the supplier before the date of supply, stating the intent of use of the electronic devices and confirming their VAT registration.
• The reverse charge mechanism does not apply to supplies related to direct or indirect export or the movement of electronic devices to designated zones.

Source: premier-brains.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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