The Ministry of Finance has introduced the Reverse Charge Mechanism (RCM) for local supplies of metal scrap between VAT-registered businesses in the UAE.
• VAT liability now shifts from the supplier to the recipient, subject to prescribed conditions.
• Objective: curb VAT leakage and enhance compliance in the scrap trading & recycling sector.
Effective from 14 January 2026
Businesses operating in this sector should review their VAT accounting, invoicing, and documentation processes to ensure timely compliance.