UAE electronics and smartphone traders get VAT relief on bulk sales

UAE electronics and smartphone traders get VAT relief on bulk sales

UAE electronics and smartphone traders get VAT relief on bulk sales

Traders and wholesalers of electronics, mobile phones, computers, and accessories in the UAE will no longer be required to charge VAT on their supplies to VAT-registered buyers who intend to resell the goods.

Buyers will instead provide a written declaration to the seller and self-account for VAT on the purchases.

This change applies to business-to-business (B2B) deals made between VAT-registered dealers.

It is expected to help mainland suppliers save exponentially on their operating costs and boost the UAE's competitiveness as a regional hub for electronics trade.

How companies will adapt and want to expand to the UAE

The UAE's new VAT rules are expected to make the country a more attractive destination for foreign investment and businesses that want to expand to the Middle East.

Companies that trade in electronics and smartphones can now save money on VAT on their bulk sales, which will make them more competitive in the market. This could lead to some companies expanding their operations in the UAE or relocating to the country altogether.

The UAE government is also offering a number of other incentives to attract foreign businesses, such as 100% foreign ownership, 0% corporate income tax, and a world-class infrastructure.

What the UAE will become in five years with these new changes

In five years, the UAE is expected to be a major hub for electronics trade in the Middle East and North Africa region. The new VAT rules and other government incentives are expected to attract more foreign investment and businesses to the country.

This will lead to increased competition and innovation in the market, which will benefit consumers. Consumers can expect to see lower prices and a wider range of electronics products available to them.

The UAE is also investing heavily in its infrastructure and digital economy. This is expected to make the country even more attractive to foreign businesses in the future.

Overall, the UAE is well-positioned to become a major player in the global electronics market in the coming years.

Published : 11-Oct-2023 09:10 PM
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