- The Ministry of Finance announced Cabinet Decision No. 153 of 2025, applying the reverse charge mechanism for VAT on metal-scrap trading between registrants in the UAE, effective 14 January 2026.
- The buyer, not the supplier, will be responsible for accounting for VAT on eligible metal-scrap transactions.
- Both supplier and recipient must fulfill 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 align with previous successful implementations in other sectors.
- The decision supports tax fairness, transparency, and competitiveness in the UAE’s business environment.
Source: zawya.com
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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