United Arab Emirates: Adopted Cabinet Decision No. 91 on Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of VAT

On 25 August 2023, the United Arab Emirates (UAE) Cabinet adopted the reverse charge mechanism for the value-added tax (VAT) Rule on the sale of electronic devices. The Rule mandates that suppliers should not apply VAT to the transaction, with the primary objective of preventing VAT fraud. The domestic reverse charge mechanism is applicable to sales within the UAE when both the customer and the seller are locally registered for VAT, and the electronic devices are intended for resale or use in manufacturing other electronic devices. The effective date of the Rule is 30 October 2023.