Reverse charge mechanism on the supply of electronic devices 

(A) Definition of Electronic Devices

• Mobile and Smart phones
• Computer devices and Tablets
• Pieces and Parts thereof

(B) Conditions to apply reverse charge*:

• Recipient is registered for VAT
• Intention to sell or use them to manufacture electronic devices

*Reverse charge mechanism shall not apply in case the supply is zero-rated export of electronic devices.

(C) Documentary and compliance requirements:

• Recipient**

a.     Written declaration on the intent to sell or use them to manufacture electronic devices.

b.    Written declaration that it is registered for VAT in the UAE

**Where recipient does not submit the required declarations, the recipient may not recover the input VAT on purchases of the electronic devices.

• Supplier

c.     Keep the written declarations as provided by the recipient

d.    Verify that the recipient is registered for VAT with the means approved by the FTA

(D) How can Crowe Help?

• Support in complying with the documentary requirements to apply reverse charge mechanism.
• Support in applying the reverse charge mechanism for qualified supply of electronic devices in the VAT return.