RCM on metal Scrap transactions
November 4, 2025
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Cabinet Decision No. 153 clarifies VAT treatment of metal scrap transactions under the Reverse Charge Mechanism. Download
Cabinet Decision No. 153 clarifies VAT treatment of metal scrap transactions under the Reverse Charge Mechanism. Download
FTA Decision No. 10 of 2025 introduces a mechanism for calculating the percentage of sugar and other sweeteners for tax and compliance purposes in the UAE. Download
FTA releases APA guidance, providing clarity on transfer pricing certainty and compliance under UAE Corporate Tax. Download
A business must register for VAT if its taxable supplies and imports exceed the mandatory threshold of AED 375,000.
Additionally, a business may voluntarily register if its total taxable supplies, imports, or taxable expenses exceed AED 187,500. Proper VAT registration ensures compliance with UAE Federal Tax Authority regulations and allows recovery of input VAT on eligible expenses.
Businesses with an annual revenue of AED 3 million or less are eligible for Small Business Relief under the UAE Corporate Tax regime.
This means they will be exempt from paying Corporate Tax and can be treated as having no taxable income for the relevant tax periods.
As per the UAE Corporate Tax Law, every business must prepare financial statements for each tax period, which is typically 12 months in duration.
However, the first tax period may be shorter or longer, provided it is not less than 6 months and not more than 18 months from the date of incorporation or commencement of business.