Tax Updates September 2023 - United Arab Emirates

Special reverse charge mechanism to the local supply of electronic devices

On 30 August 2023, The Ministry of Finance has published Cabinet Decision No. 91 of 2023 on the application of a new Reverse Charge Mechanism (the ‘New Mechanism’) on the local supplies of electronic devices, for Value Added Tax purposes.

The New Mechanism is applicable on the local supplies of electronic devices to VAT registered recipients having the intention to resell or use the goods to produce or manufacture electronic devices. The recipient of the electronic devices will have the responsibility of accounting for VAT on the value of the electronic devices and meeting all UAE VAT obligations resulting from the supply.

The New Decision was published in the official gazette on 30 August 2023 and will come into effect after 60 days from its publication date.

Implementation of Comprehensive Economic Partnership Agreements

Customs Notice No. (07/2023) and No. (08/2023) was issued on 31st August 2023 mentioning the implementation of the Comprehensive Economic Partnership Agreement between the United Arab Emirates and the Republic of Turkiye and the UAE and Republic of Indonesia, respectively, from 1st September 2023, based on the Federal Decree Law No. (91) and No. (178) of 2023.

Customs Notice concerning National system for tracking trucks and shipments

The Dubai Customs has issued Customs Notice No. (09/2023) on 14th September 2023 mentioning implementation of national tracking system on trucks and shipments from 1st November 2023, as part of its efforts to enhance the customs security system and facilitate trade by tracking the movement of cargoes and conveyances.

New Regulations on the Development of Real Estate Projects in Ras Al Khaimah

On 21 August 2023, the Ruler of Ras Al Khaimah issued Decree No. 12 of 2023, regulating the Real Estate Development sector in Ras Al Khaimah (the “New Law”).

The New Law specifies the rights and obligations of master developers, sub-developers and purchasers of real estate development projects and applies to:

• all real estate developers that wish to conduct their development business in Ras Al Khaimah; and

• all properties which are located in the Emirate of Ras Al Khaimah, including any economic zones.

The New Law is effective 60 days from the date of its publication in the official gazette which is 20 October 2023.

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