Ministerial Decision Ministerial Decision No. 262 of 2023 Ministry of Finance

MD 262/2023 — Which parts and pieces of electronic devices fall under the reverse charge

Ministerial Decision No. 262 of 2023 on Criteria to be Followed in the Determination of Parts and Pieces of Electronic Devices

In force Issued 25 October 2023 In force from 30 October 2023

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Official Arabic title
قرار وزاري رقم (262) لسنة 2023 — المعايير التي يجب اتباعها عند تحديد الأجزاء والقطع الخاصة بالأجهزة الالكترونية
Document type
Ministerial Decision
Number
262
Issued by
Ministry of Finance
Administered by
Federal Tax Authority
Issued
25 October 2023
In force from
30 October 2023
Applies to
VAT registrants that supply or buy parts, pieces and accessories of mobile phones, computers and tablets.
Current position
In force from 30 October 2023. Issued 25 October 2023 by the Minister of State for Financial Affairs for the purposes of Cabinet Decision No. 91 of 2023, whose Art. 3 calls for this ministerial decision.
Topics
VAT · Returns & payment
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Sets the criteria for deciding which pieces and parts are related to Electronic Devices and therefore fall under the reverse charge of Cabinet Decision No. 91 of 2023. Parts normally used in manufacturing and necessary for operation, items necessary for operation such as chargers, power cords and battery packs, and their replacements are covered. Accessories that only enhance use and SIM or similar smart cards are excluded.

What it means in practice Professional insight

Who: suppliers and buyers of device parts and accessories. What to check: whether each item is necessary for the device's operation (covered) or only enhances its use (not covered), and the treatment of SIM and smart cards.

Key provisions

  • Art. 2 Specifies the criteria for determining the Pieces and Parts related to Electronic Devices under Cabinet Decision No. 91 of 2023.
  • Art. 3(1) Pieces and Parts are related to Electronic Devices if they (a) are normally used to manufacture or produce the devices and are necessary for their normal operation; (b) are not normally used in manufacturing but are normally necessary for operation, such as chargers, power cords and battery packs; or (c) replace Pieces and Parts meeting (a) or (b).
  • Art. 3(2) The criteria are not met for Pieces and Parts that enhance the functioning or enjoyment of the devices but are not necessary for their operation or to activate their features, or for SIM cards and other external smart cards of the same nature or purpose.
  • Art. 4 Published in the Official Gazette; in force on the date Cabinet Decision No. 91 of 2023 comes into force.

What changed

  1. 25 October 2023 Issued
  2. 30 October 2023 In force

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 23 August 2017 Federal Decree-Law FDL 8/2017 — VAT Law In force — amended
    1. 26 November 2017 Cabinet Decision CD 52/2017 — VAT Executive Regulation — Executive Regulation of this law In force — amended
      1. 24 July 2018 Cabinet Decision CD 41/2018 — Introducing the VAT refunds for tourists scheme — Made under Art. 68 In force
        1. 29 August 2018 FTA Decision FTA Decision 1/2018 — Retailer requirements for the VAT refunds for tourists scheme — Made under it In force
        2. 28 April 2019 FTA Decision FTA Decision 1/2019 — AED 7,000 cap on cash VAT refunds to tourists (repealed) — Made under it Repealed
        3. 26 May 2022 FTA Decision FTA Decision 4/2022 — One-year time limit for tourists to claim VAT refunds — Made under it In force
        4. 21 July 2022 FTA Decision FTA Decision 6/2022 — AED 35,000 cap on cash VAT refunds to tourists — Made under it In force
      2. 6 November 2018 FTA Decision FTA Decision 2/2018 — VAT refunds for tourists (consolidated 2026) — Made under Art. 68 In force — amended
      3. 17 December 2018 FTA Decision FTA Decision 4/2018 — No tax invoice for supplies through vending machines — Made under Art. 59(7) In force
      4. 26 May 2019 FTA Decision FTA Decision 7/2019 — Combined tax invoice/credit note and mailing addresses — Made under Arts. 59, 60 In force
      5. 22 February 2023 Ministerial Decision MD 26/2023 — When a supply counts as electronic commerce for VAT records — Made under Art. 72(5) In force
      6. 14 July 2026 Directive on Tax Transactions DTT 4/2026 — VAT on fees within life insurance contracts — Made under Art. 42 In force
      7. 1 September 2026 Cabinet Decision CD 149/2026 — VAT Regulation amendments — Amends Arts. 4, 29, 41, 52, 53, 54, 55, 57, 60 In force
      8. 9 September 2026 FTA Decision FTA Decision 17/2026 — Input tax on employee expenses — Made under Art. 53(1)(c) In force
    2. 28 December 2017 Cabinet Decision CD 55/2017 — Charities that may recover input tax (list as amended to Dec 2024) — Made under it In force — amended
    3. 28 December 2017 Cabinet Decision CD 56/2017 — Zero-rated medications and medical equipment — Made under it In force
    4. 28 December 2017 Cabinet Decision CD 59/2017 — Designated Zones for VAT (with the FTA list) — Made under it In force — amended
    5. 22 May 2018 Cabinet Decision CD 26/2018 — VAT refund on exhibition and conference services — Made under it In force
    6. 22 May 2018 Cabinet Decision CD 25/2018 — VAT on gold and diamonds between registrants (repealed) — Made under it Repealed
    7. 2 January 2020 Cabinet Decision CD 1/2020 — VAT refund for Expo 2020 Dubai official participants — Made under it In force
    8. 1 September 2020 Cabinet Decision CD 9/12 O of 2020 — Temporary zero rate on COVID-19 protective equipment — Made under it Spent
    9. 16 August 2022 Cabinet Decision CD 82/2022 — Refund of input tax on building and operating mosques — Made under it In force
      1. 29 October 2022 Ministerial Decision MD 162/2022 — Deadlines for mosque input tax refund requests — Made under it In force
    10. 25 August 2023 Cabinet Decision CD 91/2023 — Reverse charge on mobile phones, computers and tablets — Made under it In force
      1. 25 October 2023 Ministerial Decision MD 262/2023 — Which parts and pieces of electronic devices fall under the reverse charge — Made under it In force
    11. 1 November 2024 FTA Decision FTA Decision 8/2024 — Correcting VAT return errors that do not change the tax due — Made under it In force
    12. 16 December 2024 Cabinet Decision CD 127/2024 — Reverse charge on gold, precious metals and precious stones — Made under it In force
    13. 12 September 2025 Ministerial Decision MD 243/2025 — E-invoicing system — Made under e-invoicing provisions In force — amended (see E-Invoicing)
    14. 4 November 2025 Cabinet Decision CD 153/2025 — Reverse charge on metal scrap between registrants — Made under it In force
    15. 8 July 2026 Directive on Tax Transactions DTT 1/2026 — VAT on judicial expert services — Made under Art. 13 In force
    16. 8 July 2026 Directive on Tax Transactions DTT 2/2026 — VAT adjustments after leaving a Tax Group — Made under it In force
    17. 14 July 2026 Directive on Tax Transactions DTT 3/2026 — Converting digital-currency consideration to AED — Made under it In force
    18. 20 July 2026 Directive on Tax Transactions DTT 5/2026 — Valuing deemed supplies of services — Made under Art. 37 In force
    19. 22 July 2026 FTA Decision FTA Decision 13/2026 — Verifying suppliers before deducting input tax — Made under it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Related services: VAT Services · VAT Health Check

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.