Ministerial Decision No. 262 of 2023 on the Criteria to be Followed in the Determination of Parts and Pieces of Electronic Devices
Issue
Cabinet Decision No. 91 of 2023 on the Application of Reverse Charge Mechanism on Electronic Devices among Registrants1 in the State for the purposes of Value Added Tax (“Cabinet Decision No. 91”) has defined a distinct tax treatment for certain supplies that relate to Electronic Devices.
Under application of Article 3 of Cabinet Decision No. 91, a Ministerial Decision No. 262 of 2023 on the Criteria to be Followed to Determine of Pieces and Parts of Electronic Devices (“Ministerial Decision No. 262”) has been issued.2
This public clarification should be read together with VATP034 on the Application of the Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the purposes of Value Added Tax.
Summary
Article 3(1) of Ministerial Decision No. 262 states three criteria according to which pieces and parts will be considered to be related to Electronic Devices and fall within the scope of the VAT treatment and related compliance obligations implemented by Cabinet Decision No. 91.3
The pieces and parts will be considered related to Electronic Devices if they meet one or more of the three criteria and do not fall within the exceptions stated in Article 3(2) of Ministerial Decision No. 262.4
Ministerial Decision No. 262 takes effect from the same day that Cabinet Decision No. 91 takes effect, i.e. on 30 October 2023.
VATP035 – Criteria Pieces and Parts Electronic Devices – 01 12 2023 Download the complete