UAE Implements Reverse Charge VAT Mechanism for Scrap-Metal Trading Effective January 2026

• The UAE Ministry of Finance announced Cabinet Decision No. 153 of 2025, implementing a reverse charge mechanism for VAT on scrap-metal trading between registrants, effective January 14, 2026.
• The reverse charge shifts VAT accounting responsibility from the supplier to the buyer, aiming to improve tax system efficiency and reduce fraud in the metal-scrap sector.
• Both suppliers and buyers must meet specific procedural requirements, including written declarations and invoice statements confirming the reverse charge applies.
• The measure is expected to enhance tax fairness, voluntary compliance, and transparency, while supporting the competitiveness of the UAE business environment.
• This follows similar successful implementations in sectors like electronic devices and precious metals, aligning with the UAE’s vision for a transparent and sustainable financial framework.

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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