The United Arab Emirates (UAE) has announced new value-added tax (VAT) rules for registered gold and diamond dealers, aimed at boosting the sector’s growth and aligning with global best practices.
The Ministry of Finance (MoF) has issued Cabinet Decision No. (127) of 2024, extending the reverse charge mechanism to businesses trading in precious metals and stones.
Under the reverse charge rules, suppliers are no longer required to charge or collect VAT from registered customers. Instead, buyers are now responsible for calculating and reporting VAT in their tax returns.
Reverse charge mechanism coverage
- Precious metals: Gold, silver, palladium, and platinum
- Precious stones: Diamonds (natural and manufactured), pearls, rubies, sapphires, and emeralds.
- Jewellery: Items made with these precious metals or stones, provided that the value of the precious metals or stones surpasses the value of other components.
This expansion is expected to strengthen the UAE’s position as a global hub for precious metals and stones trading.
The Ministry of Finance emphasized that the changes reflect its commitment to creating a robust regulatory framework that fosters corporate growth and innovation while staying aligned with international standards.
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