Cabinet Decision No. 153 of 2025 on the 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") introduced an obligation to apply the reverse charge mechanism on supplies of Metal Scrap between Registrants, and requires both the supplier and the recipient to meet additional compliance requirements with effect from 14 January 2026.
The purpose of this Public Clarification is to clarify the scope and application of Cabinet Decision No. 153 of 2025, and the changes resulting from its issuance.
Registrants¹ supplying Metal Scrap² to other Registrants who intend to use such Metal Scrap for resale or Processing² shall not account for VAT on such supplies but the Due Tax¹ on those supplies shall be accounted for by the recipient of the Metal Scrap ("Recipient") under the reverse charge mechanism, subject to the conditions set out in Cabinet Decision No. 153 of 2025.
Where the conditions specified in Cabinet Decision No. 153 of 2025 are ...