New Article 11E | Important Update On The VAT Treatment Of Certain Electronic Devices

Effective from 01 October 2020, where the purchaser of certain types of electronic devices is a taxable person, and provided the devices will be used for business purposes, the purchaser must self-account for VAT under the reverse charge provisions. These electronic devices include:

i. Mobile phones;

ii. Integrated circus devices (such as microprocessors) and central processing units;

iii. Gaming consoles, computer tablets and laptops.

The above amendment, introduced by Article 11E, is widely anticipated to improve VAT collection and tackle the growing concern of tax evasion. Below we examine the VAT implications, resulting from the sale of the aforementioned goods, by focusing on the VAT-status of both the customer and the supplier.