Introduction of Reverse Charge Mechanism on Supply of Electronic Devices

Recently, the Federal Tax Authority has introduced application of Reverse Charge Mechanism on Supply of Electronic Devices meant for the purpose of resell or for further production / manufacturing. The UAE is a hub for electronic devices and therefore RCM on supply of electronic devices would give immense relief to relevant businesses. Benefit of this provision can be availed only upon having requisite documents / declarations in place. In light of this provision, it would be advisable to evaluate taxability of transactions and take suitable tax positions for future transactions.

We have enclosed our presentation capturing key aspects, for your kind reference.