Issuance of Ministerial Decision No.262 on criteria of Electronic Device Components


On October 25, 2023, with effect from October 30, 2023, the UAE Federal Tax Authority (FTA) introduced Ministerial Decision No. 262 of 2023, outlining the “Criteria for Identifying Components and Elements of Electronic Devices.

What is Ministerial Decision 262 in the UAE?

The definitions outlined in Federal-Decree Law No. 8 of 2017 and Cabinet Decision No. 91 of 2023 shall apply to this Decision. Additionally, the following terms and expressions shall hold the meanings specified for each, unless the context dictates otherwise:

  • Executive Regulation: As defined in Cabinet Decision No. 52 of 2017, which relates to the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax, including any subsequent amendments.
  • Pieces and Parts: This term relates to components and elements associated with Electronic Devices.

Criteria discussed under decision for electronic parts and pieces

Under the Ministerial Decision 262 of 2023 issued in UAE the pieces and parts of electronic devices would be considered for tax regulation under a few conditions:

  • Components of electronic devices utilized for the production or manufacturing process are considered vital for operating any electronic device.
  • Components that aren’t used for manufacturing or production of electronic device procedures, but fall under the category of essential electronic device operation – for instance, battery packs, power chores, chargers, and other parts.
  • Replacement components that satisfy the criteria outlined in paragraphs (a) and (b) of Clause 1 of this Article.

Additional conditions of Article (1) shall not meet with this situation

  • Additional components aid in functioning or enjoyment through electronic devices, but are not considered important for electronic device’s operation or activating basic features
  • SIM cards or external smart cards that serve the same purposes.

 Enforcement and Publishment of Ministerial Decision 262

The decision is published in the Official Gazette and is expected to come into force under Cabinet Decision no 91 of 2023.

Read about Cabinet Decision No. 91 of 2023 on Electronic Devices among Registrants in the State for the purposes of Value Added Tax


Recently, the FTA issued Ministerial Decision 262 to outline the importance of maintaining records of components of electronics for VAT considerations. We hope this blog has helped you gain insights on this decision, if you want to know more get in touch with our team. N R Doshi and Partner make sure that VAT implementation is done correctly while considering different aspects of your business. Call us at +971 50 6591233 or simply write to us at we will contact you shortly.

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