Cabinet Decision No. 91 of 2023 on the Application of Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of Value Added Tax (“Cabinet Decision No. 91 of 2023”) has introduced a distinct VAT treatment for certain supplies that relate to Electronic Devices and requires both recipient and supplier to implement a number of compliance requirements.
This 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.
Registrants supplying Electronic Devices to other registrants who intend to use these Electronic Devices for resale or manufacturing, will not account for VAT on such supplies, and Due Tax on the supplies will be accounted for under a reverse charge by the Recipient of Goods (“Recipient”). If the requirements specified in Cabinet Decision No. 91 of 2023 are not met, the default rule of the supplier accounting for VAT would apply but ...