UAE announces revised VAT regulations for gold and diamond businesses
Emirates expands reverse charge mechanism to precious metals and stones, boosting trade growth and global compliance
UAE Announces New VAT Rules to Empower Gold and Diamond Industry
The United Arab Emirates (UAE) has announced new Value Added Tax (VAT) rules for registered gold and diamond traders, aimed at boosting the sector’s growth and aligning it with global best practices.
Cabinet Decision No. (127) of 2024, published by the Ministry of Finance (MoF), expands the use of the reverse charge mechanism to companies who deal in precious metals and stones.
Suppliers are no longer obligated to charge or collect VAT from registered customers under the reverse charge regulations. Buyers will now be in charge of figuring out and disclosing VAT on their tax returns instead.
Reverse charge mechanism coverage
Precious metals: gold, silver, palladium and platinum
Precious stones: diamonds (natural and manufactured), pearls, rubies, sapphires and emeralds.
Jewelry: Things created with these valuable metals or stones, as long as their worth outweighs that of the other ingredients.
The expansion is expected to solidify the UAE’s position as a major international trading hub for precious metals and stones.
The Ministry of Finance underlined that the changes demonstrate its commitment to creating a robust regulatory framework that supports business expansion and innovation while adhering to global regulations.
