Please Try a Different Browser

You are using an outdated browser that is not compatible with our website content. For an optimal viewing experience, please upgrade to Microsoft Edge or view our site on a different browser.

If you choose to continue using this browser, content and functionality will be limited.

country-icon United Arab Emirates


Introduction of a special reverse charge mechanism for the supply of electronic services

According to Cabinet Decision No. 91 of 2023, the newly introduced reverse charge mechanism applies to local supplies of electronic devices where the recipient intends to resell the devices or use them to manufacture or produce electronic devices, provided the conditions and requirements are met. An “Electronic Device” refers to mobile phones, computers, tablets and their spare parts.

In accordance with the new decision on local electronic device supplies, suppliers are not required to calculate VAT on supplies of electronic devices and should not include the supplies in their VAT returns if the supplies are to a VAT registered recipient in UAE intending to either resell the electronic devices or manufacture electronic devices. The recipient should be responsible for VAT obligations related to the supply.

The following requirements must be met in order to use the special reverse charge mechanism of supplies of e-devices:

  • The recipients of electronic devices are registered for VAT with the Federal Tax Authority. Recipients must also provide a written declaration stating the intention of the supply of electronic devices.
  • The suppliers of electronic devices should store the written declaration received from the recipient and to verify that the recipient is VAT registered.

The new decision will take effect on 29 October 2023. Electronic device suppliers should assess the VAT implications of the newly introduced reverse charge mechanism and make the necessary changes to their systems.

Schedule a Free Consultation

Let us show you how we can support your business to send 100% compliant e-invoices in 54 countries. Please provide your details and one of our team will be in touch.

First Name
Last Name
Job Title

By submitting this form, you agree to Tungsten Automation terms of use and privacy policy.*