Insights E-Invoicing
Reverse Charge Invoice UAE: PINT AE Format for Gold and Scrap Metal Supplies
How UAE suppliers of investment gold and scrap metals issue reverse-charge invoices under PINT AE — VAT category code, buyer self-accounting, and FTA evidence.
Key takeaways
- Domestic reverse charge applies to gold and diamond supplies between registered businesses (Cabinet Decision 25 of 2018)
- Domestic reverse charge extended to scrap metals from 1 January 2024 (Cabinet Decision 91 of 2023)
- Supplier issues invoice at 0 VAT with reverse-charge notation; buyer self-accounts for output VAT
- Both parties must be VAT-registered, and the buyer must declare intent in writing
- PINT AE captures the reverse charge via category code and a dedicated exemption-reason field
Domestic reverse-charge accounting is one of the most technically demanding areas of UAE VAT, and one of the highest-stakes once the e-invoicing mandate goes live under Ministerial Decisions 243 and 244 of 2025 and the penalty framework in Cabinet Decision 106 of 2025. UAE suppliers of investment gold, diamonds and scrap metals must issue invoices that shift the VAT accounting obligation to the registered buyer, format them correctly under PINT AE, and retain the supporting declarations that the Federal Tax Authority will inspect during any audit.
This guide explains how to issue a domestic reverse-charge invoice under PINT AE — which categories qualify, the structured fields the FTA expects, the written declarations the supplier must hold, and how the workflow differs between the gold/diamond regime and the scrap metals regime added from 1 January 2024.
AE
PINT AE category code for domestic reverse charge
So what is domestic reverse charge?
In a standard UAE VAT transaction, the supplier charges 5% VAT, collects it from the buyer, and remits it to the FTA. Under domestic reverse charge, the supplier issues the invoice at 0 VAT, the buyer self-accounts for both the output VAT (as if they had supplied the goods to themselves) and the corresponding input VAT recovery in the same period. The net VAT effect is typically nil — but both sides must report the transaction.
Why does the mechanism exist? Two reasons. It removes the supplier’s cash-flow burden of collecting VAT on large-value transactions. And it closes a fraud channel — the FTA never has to chase a supplier for VAT they may never have collected on high-value, fast-moving goods like gold and scrap. Honestly, of the two, the anti-fraud motive is the one that drives how strictly the rules get enforced.
The UAE applies domestic reverse charge to two main categories today:
- Gold and diamonds between VAT-registered businesses, under Cabinet Decision No. 25 of 2018
- Scrap metals between VAT-registered businesses from 1 January 2024, under Cabinet Decision No. 91 of 2023
Cross-border imports of services and goods also operate on a reverse-charge basis, but those follow separate rules under Articles 48-49 of Federal Decree-Law No. 8 of 2017. This guide focuses on the domestic regime.
When reverse charge actually kicks in
Domestic reverse charge does not apply automatically to every gold or scrap supply. The conditions are strict.
For gold and diamond supplies (Cabinet Decision 25 of 2018):
- Both supplier and buyer must be VAT-registered in the UAE
- The buyer must intend to use the goods for resale, manufacture, or further production of gold/diamond products
- The buyer must provide a written declaration confirming VAT registration, qualifying end-use, and acknowledgement of reverse-charge treatment
- The supplier must retain the declaration in their records
For scrap metal supplies (Cabinet Decision 91 of 2023, effective 1 January 2024):
- Both supplier and buyer must be VAT-registered in the UAE
- The goods must fall within the scope of the Cabinet Decision’s scrap metals list
- The buyer’s written declaration must confirm registration and end-use
- The supplier must retain the declaration
If any condition is missed (buyer not VAT-registered, declaration not obtained, end-use does not qualify) the supply reverts to standard-rated and the supplier must charge 5% VAT. Getting this wrong is the most expensive single VAT error category in UAE SME practice.
PINT AE field map, line by line
Under PINT AE, a domestic reverse-charge invoice is identified by a specific combination of fields that the ASP’s validation engine cross-checks before transmission.
| Block | Required field | Value for reverse charge |
|---|---|---|
| Tax breakdown | VAT category code | AE (Peppol code for VAT Reverse Charge) |
| Tax breakdown | VAT rate | 0.00 |
| Tax breakdown | Taxable amount | Full invoice net amount |
| Tax breakdown | Tax amount | 0.00 |
| Tax breakdown | Exemption reason code | Reference to Cabinet Decision 25/2018 or 91/2023 |
| Tax breakdown | Exemption reason text | Plain-language note: “Domestic reverse charge — gold and diamond supplies, Cabinet Decision 25 of 2018” |
| Buyer block | Buyer TRN | Mandatory — buyer must be VAT-registered |
| Document | Notes | Recommended note repeating the reverse-charge basis |
The ASP validation engine checks that the buyer TRN is active in the FTA register before it accepts category code AE. If the buyer isn’t VAT-registered, the invoice bounces. The system simply won’t let you classify a sale to a non-registered counterparty as reverse charge.
The exemption reason text is the field that earns its keep during an audit. A clear note pointing to the right Cabinet Decision saves you a lot of explaining a year later.
A Dubai gold trader bills AED 800k — what the invoice looks like
A Dubai gold trading company sells investment-grade gold bullion worth AED 800,000 to a registered jewellery manufacturer on 15 July 2026. The buyer provides the written declaration confirming VAT registration and intent to use the gold for jewellery manufacture.
| Field | Value |
|---|---|
| Invoice value (net) | AED 800,000 |
| VAT category code | AE |
| VAT rate | 0.00 |
| VAT amount on invoice | AED 0 |
| Exemption reason | Cabinet Decision 25 of 2018 — Gold and diamond supplies reverse charge |
| Buyer notes | ”VAT to be self-accounted by buyer under reverse charge” |
| Document total | AED 800,000 |
Supplier’s VAT return reporting: AED 800,000 in Box 6 (reverse-charge supplies).
Buyer’s VAT return reporting: AED 800,000 in Box 3 (supplies received subject to reverse charge), AED 40,000 output VAT (5% of AED 800,000) and AED 40,000 input VAT in Box 9. Net VAT effect: nil.
The PINT AE invoice flows through the supplier’s ASP, reaches the buyer’s ASP, and is booked in both systems with the correct entries. The FTA sees both sides in real time and the net VAT position reconciles automatically.
Scrap metals joined the regime in 2024
The scrap metals reverse-charge regime came into effect 1 January 2024 under Cabinet Decision 91 of 2023. It applies to a defined list of scrap metal categories supplied between VAT-registered UAE businesses.
The mechanics are identical to the gold/diamond regime: supplier invoices at 0 VAT with category code AE, buyer self-accounts. The only differences are:
- The exemption reason references Cabinet Decision 91 of 2023 rather than Cabinet Decision 25 of 2018
- The buyer’s written declaration must specifically address the scrap metals end-use
- The qualifying goods are defined by Cabinet Decision 91 of 2023 — businesses dealing in mixed scrap should map every item code to the qualifying list
For businesses that deal in both gold and scrap (or other reverse-charge categories), each transaction must be classified individually. The category code, exemption reason and buyer declaration are per-transaction, not per-customer.
Reverse charge is per-supply, not per-customer. The same buyer can have one reverse-charge invoice and one standard-rated invoice on the same day if the end-use differs.
On the buyer’s side, after the file lands
Once the buyer’s accounting system receives the PINT AE invoice from their ASP and identifies the AE category code, the system must:
- Book the supply at gross value (AED 800,000 in the example above)
- Calculate and book output VAT at 5% (AED 40,000)
- Calculate and book input VAT at the same 5% (AED 40,000) where the buyer is entitled to full recovery
- Report the transaction in Box 3 of the next VAT return
- Report the input VAT in Box 9
Modern cloud accounting systems — Zoho Books, Xero, QuickBooks, Tally, Odoo, SAP, Microsoft Dynamics 365 — handle reverse-charge entries through tax codes that automatically generate the double-sided entry. The configuration needs to be set up before the first invoice arrives; relying on manual journals at month-end creates errors.
Where the buyer is partially exempt (financial services firms, residential property landlords with mixed portfolios), the input VAT recovery may be restricted under the standard apportionment rules. The reverse-charge mechanism does not override partial exemption — it just shifts where the VAT is reported.
When the two sides don’t tie out
The FTA’s real-time data feed gives the reconciliation a clean structure. For every PINT AE invoice with category code AE issued under a supplier TRN, the same invoice should appear in the buyer TRN’s incoming feed with both an output and input VAT entry within the same period.
Where the reconciliation does not match, the cause is usually one of:
- Supplier issued reverse-charge invoice but buyer did not self-account (buyer system not configured)
- Buyer’s accounting period differs from supplier’s, creating a timing gap
- Buyer did not register for VAT, so reverse charge was inappropriate from the start
- Category code applied incorrectly to a standard-rated supply
The first two are workflow issues that ASPs can flag automatically. The third and fourth are classification errors that surface as FTA queries within one or two quarters of go-live.
What goes into the buyer’s written declaration
The written declaration the buyer provides should include, at minimum:
- Buyer’s full legal name and trade licence number
- Buyer’s TRN (and confirmation it is active)
- Statement of intent to use the goods for the qualifying end-use (resale, manufacture or further production)
- Reference to the relevant Cabinet Decision (25 of 2018 for gold/diamonds, 91 of 2023 for scrap)
- Acknowledgement that the buyer will self-account for VAT under reverse charge
- Date and authorised signature
This declaration can be a one-time blanket declaration covering all qualifying supplies from a given supplier (refreshed annually), or per-transaction. Most operators use a blanket declaration for established trading relationships. Either way, the declaration must be in writing and retained for 5 years under Article 78 of FDL 8/2017.
Questions to put to every ASP shortlist
When shortlisting an Accredited Service Provider, reverse-charge handling deserves explicit testing. The questions to ask:
- Does the ASP validate buyer TRN registration status before accepting category code
AE? - Can the ASP store exemption reason references at category-code level?
- Does the ASP produce a Box 6 reconciliation report for the supplier and Box 3/Box 9 for the buyer?
- Can the ASP flag where a customer regularly receives reverse-charge invoices without the corresponding declaration on file?
- How does the ASP handle credit notes against reverse-charge invoices — does the original
AEcode carry forward correctly?
The global tax-technology specialists (Pagero, Avalara, Sovos, Edicom) typically have well-developed reverse-charge handling because they support multiple EU and APAC regimes with similar mechanisms. Regional UAE providers vary — ask for reference customers in gold trading, jewellery manufacturing or scrap metals before signing.
If you issue these invoices regularly, work through this list
If your business issues reverse-charge invoices regularly — typical for gold traders, refiners, jewellery wholesalers, scrap metal dealers — work through this checklist before your mandatory deadline.
- Identify every customer that currently receives reverse-charge invoices
- Confirm each customer’s VAT registration is current via the FTA register
- Verify the buyer’s written declaration is on file, dated, and signed
- Refresh blanket declarations more than 12 months old
- Configure customer master records with default category code
AEwhere appropriate - Build the exemption reason text into the invoice template
- Pilot the new PINT AE workflow with one reverse-charge customer
- Reconcile Box 6 reporting for the current quarter as a baseline
- Train accounts team on the per-supply classification rule (not per-customer)
- Set up the credit-note workflow to carry forward the
AEcode correctly
For the underlying reverse-charge mechanism rules, see our reverse charge mechanism UAE guide. For where the category code sits in the wider PINT AE field map, see our UAE tax invoice format 2026 guide. Gold and jewellery traders should also review our gold jewellery accounting UAE guide for sector-specific considerations.
How Velmont Crest helps
For UAE businesses operating in gold, diamond or scrap metals, the e-invoicing mandate is an opportunity to fix the declaration-tracking debt that most operators have accumulated since 2018. The cleanest sequence is:
- Run a master-data audit on every customer currently receiving reverse-charge invoices
- Verify the written declaration is on file and current for each
- Reclassify any past invoices where the declaration is missing or expired
- Quantify any output VAT exposure and assess voluntary disclosure
- Configure ASP validation rules to enforce buyer registration checks
- Pilot the PINT AE workflow with one or two key customers before mandatory go-live
Done well, reverse-charge invoicing under PINT AE removes the manual classification burden and gives the FTA a real-time reconciliation across both parties. Done late, missing declarations and miscoded invoices compound into the most expensive single VAT exposure category in UAE SME practice.
For tailored advisory on your reverse-charge invoicing setup and declaration audit ahead of the rollout, contact Velmont Crest — we work alongside your ASP selection, not against it.
Frequently asked questions
- Which UAE supplies fall under domestic reverse charge?
- For most traders it comes down to gold and scrap. Gold and diamond supplies between VAT-registered businesses, where the buyer declares in writing that the goods are for resale, manufacture or further production of gold/diamond products — that's Cabinet Decision 25 of 2018. Scrap metal supplies between VAT-registered businesses have been in scope since 1 January 2024 under Cabinet Decision 91 of 2023. Cross-border imports of services and goods also work on a reverse-charge basis, but those sit under separate rules in FDL 8/2017.
- Does the supplier charge any VAT on a reverse-charge invoice?
- No. You issue the invoice at 0 VAT and mark it clearly as a reverse-charge supply, citing the relevant Cabinet Decision. The buyer then accounts for the output VAT and the matching input VAT on their own return, which usually nets to nil where they can fully recover. One thing people forget: you still report the transaction in your own VAT return, Box 6.
- What VAT category code does PINT AE use for domestic reverse-charge supplies?
- Code AE — VAT Reverse Charge. It comes from the Peppol BIS specification and the FTA's PINT AE spec adopts it directly, at rate 0.00. Where the ASP supports the field, add an exemption reason code pointing to the relevant Cabinet Decision. Before it accepts the AE code at all, the validation engine checks that both parties are VAT-registered.
- What evidence must the supplier retain to support a reverse-charge classification?
- The buyer's written declaration is the core of it — confirming they're VAT-registered, that the goods qualify, and what the goods are actually for. Gold and diamond declarations have to confirm intent to resell, manufacture or further produce gold/diamond products; scrap declarations confirm trader registration and end-use. Keep the declaration for 5 years under Article 78 of FDL 8/2017, together with the PINT AE invoice and proof of delivery. That's the bundle an auditor will ask to see.
- How does the buyer report a reverse-charge purchase under e-invoicing?
- The buyer's system pulls the PINT AE invoice from your ASP over Peppol, spots the AE category code, and books two entries in the same period: output VAT at 5% on the supply value, and input VAT at the same amount. Where input VAT is fully recoverable the net effect is nil. The supply shows in Box 3 (supplies received subject to reverse charge) and the input VAT in Box 9.
Filed under: Reverse Charge UAE, Gold Scrap, PINT AE, VAT Category, E-Invoicing
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