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Application of the Reverse Charge Mechanism on Metal Scrap Trading among Registrants in the State for the Purposes of Value Added Tax

Cabinet Decision No. 153 of 2025

Issued 4 Nov 2025 - (Effective from 14 January 2026)


The Cabinet has decided:

Article 1 - Definitions

The definitions contained in Federal Decree-Law No. 8 of 2017 referred to shall apply to this Decision, as an exception to that, the following words and expressions shall have the meaning assigned against each, unless the context requires otherwise:

Metal Scrap

:

Ferrous or non-ferrous metal waste that have commercial value and is useable following its Processing.

Processing

:

The operation through which Metal Scrap is converted into materials that can be used in the manufacturing of new products, whether by repairing, recycling, or any other method.

Article 2 - Application of the Reverse Charge Mechanism on Metal Scrap