🇦🇪UAE

غرامات آلية الخصم العكسي لضريبة القيمة المضافة - قرار 153/2025 (الخردة المعدنية)

2 verified sources

Definition

Scrap metal is a by-product of metal manufacturing (trimmed edges, failed castings, defects). Disposition (sale to scrap dealers/recyclers) must now comply with RCM starting 14 Jan 2026. Sellers must retain buyer declarations; buyers must document resale/processing intent and FTA registration. Manual tracking of documentation and VAT calculations creates compliance gaps: missing declarations, incorrect VAT coding, late filings.

Key Findings

  • Financial Impact: VAT penalty for non-compliance: UAE typically assesses 5-25% of underpaid VAT for documentation failures; 10-100% surcharge for fraud/negligence. Estimated scrap metal revenue: AED 100,000-1,000,000 annually (5-10% of material waste). VAT on scrap (estimated 5% rate): AED 5,000-50,000. Penalty exposure: AED 1,000-25,000+ per quarter if RCM documentation fails.
  • Frequency: Quarterly VAT filing deadlines; RCM applies to every scrap metal disposal transaction (continuous exposure).
  • Root Cause: Manual collection of buyer declarations. No automated FTA registration verification. Delayed or absent invoice issuance for scrap sales. No integration of scrap disposition data into VAT filing system.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Primary Metal Manufacturing.

Affected Stakeholders

VAT Compliance Officer, Scrap Sales/Disposition Manager, Finance/Accounts Payable, FTA Liaison

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

غرامات عدم الامتثال لقرار مجلس الوزراء 121/2023 - نظام الفولاذ

Revenue loss: Estimated 20-100% of annual revenue if market access revoked during compliance gap. Material disposition costs: 5-15% of product batch value for scrap/rework. Estimated impact: AED 500,000 - AED 5,000,000+ annually for mid-sized manufacturer (assuming 10% of batches fail and AED 5-50M annual revenue).

تكاليف إعادة المعالجة والتخلص من المواد غير المطابقة (Material Disposition)

Scrap cost: 5-15% of batch value per non-conformance episode. Rework cost: AED 10,000-100,000 per batch (labor, energy, re-inspection). Average batch: AED 50,000-500,000. Estimated frequency: 2-5% of batches fail audit per quarter. Annual impact: AED 200,000-2,500,000 for mid-sized manufacturer. Plus time-to-cash delay: 10-30 day postponement of payment receipt (carrying cost at 5-10% = AED 10,000-100,000 annually).

تأخر عملية المعالجة اليدوية والاختناقات في التحقق من عدم المطابقة

Manual labor: 20-40 hours/month × AED 50-150/hour = AED 1,000-6,000/month = AED 12,000-72,000 annually. Inventory carrying cost during investigation hold: AED 50,000-500,000 in material stuck in queue × 10 days average delay × 0.01% daily financing rate = AED 5,000-50,000 annually. Overtime for expedited rework: 5-10 hours/month × AED 200/hour (1.5x rate) = AED 1,000-2,000/month = AED 12,000-24,000 annually. Total: AED 29,000-146,000+ annually.

عدم الامتثال لنظام جواز السفر الرقمي للمنتجات الفولاذية

AED 50,000–150,000 per regulatory non-compliance incident (typical UAE manufacturing penalty range); estimated 20–30 hours/month for manual compliance documentation and Notified Body coordination

عدم الامتثال لآلية العكس الضريبي للمعادن الثمينة

AED 10,000–50,000 per month in manual VAT adjustment hours (estimated 15–25 hours/month at AED 150–200/hour); estimated 2–4% revenue leakage from unbilled VAT corrections

رفض المنتجات بسبب عدم استيفاء متطلبات شهادة الامتثال والعلامة البيئية

AED 100,000–300,000 annually per manufacturing facility from rework, refunds, and inventory write-downs (estimated 3–5% of monthly metal sales); AED 50,000–100,000 for EPD preparation and third-party certification (EN 15804 standard[1])

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