1. Where a supplier supplies Scrap Metal to a recipient registered with the Authority, and the recipient intends to resell it or use it in Processing, the following rules shall apply: a. The supplier shall not be responsible for accounting for the Tax related to the supply of Scrap Metal and shall not include it in its Tax Return. b. The recipient shall be responsible for accounting for the Tax due on this supply and for all related Tax obligations. 2. The provisions of Clause (1) of this Article shall not apply if the supply of Scrap Metal is subject to VAT at the zero rate in accordance with Clause (1) of Article (45) of Federal Decree by Law No. (8) of 2017. 3. For the purposes of applying Clause (1) of this Article, the following shall be observed: a. The recipient of Scrap Metal shall comply with the following prior to the date of supply: 1. Submit a written declaration to the supplier of Scrap Metal stating that the supply is for the purposes specified in Clause (1) of this Article. 2. Submit a written declaration to the supplier of Scrap Metal confirming that the recipient is registered with the Authority. b. The supplier of Scrap Metal shall comply with the following prior to the date of supply: 1. Receive and retain the declarations referred to in Paragraph (a) of Clause (3) of this Article. 2. Verify that the Scrap Metal recipient is registered, in accordance with the methods approved by the Authority. 3. Include an explicit statement on the invoice indicating the application of the reverse charge mechanism. 4. If the Scrap Metal recipient fails to submit the declarations referred to in Paragraph (a) of Clause (3) of this Article, Clause (1) of this Article shall not apply to that recipient, and the recipient may not consider the Scrap Metal to be used or intended to be used for the cases specified in Paragraph (a) and Paragraph (b) of Clause (1) of Article (54) of Federal Decree by Law No. (8) of 2017.
Interpretation and application must be checked against the official text and current version.