UAE Introduces Ministerial Decision 262 on Criteria for Electronic Device Components

• UAE Federal Tax Authority introduced Ministerial Decision No. 262 of 2023
• Decision outlines criteria for identifying components and elements of electronic devices
• Definitions from Federal-Decree Law No. 8 of 2017 and Cabinet Decision No. 91 of 2023 apply
• Decision applies to pieces and parts of electronic devices
• Components used for production or manufacturing process are considered vital
• Components not used for manufacturing but essential for device operation are included
• Replacement components meeting criteria are also considered
• Additional components that enhance device function but not essential are excluded
• SIM cards or external smart cards with same purposes are excluded
• Decision is published in Official Gazette and enforced under Cabinet Decision No. 91 of 2023
• Decision emphasizes importance of maintaining records of electronic components for VAT considerations.

Source: nrdoshi.ae

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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