- The Ministry of Finance announced Cabinet Decision No. 153 of 2025, implementing a reverse charge mechanism for VAT on scrap-metal trading between registrants in the UAE, effective 14 January 2026.
- The reverse charge shifts VAT accounting responsibility from the supplier to the buyer for eligible metal-scrap transactions.
- Both supplier and buyer must meet specific procedural requirements, including written declarations and invoice statements confirming the reverse charge applies.
- The measure aims to reduce tax fraud, improve tax system efficiency, and promote transparency and compliance in the metal-scrap sector.
- This decision aligns with the UAE’s broader financial framework and follows similar mechanisms in other sectors like electronics and precious metals.
Source: mof.gov.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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