Gold and Jewellery VAT in Dubai: The Reverse Charge

• 08 October, 2026
• By the Exiloz tax team
• Tax Compliance

Last reviewed 8 October 2026 by the Exiloz tax team against the UAE legislation in force on that date. Tax law moves — confirm any figure against tax.gov.ae before you act on it.

In a B2B gold trade, the buyer pays the VAT

Since 26 February 2025, VAT on gold and precious stones traded between VAT-registered UAE businesses has worked differently. Under Cabinet Decision No. 127 of 2024, the buyer accounts for the VAT through the reverse charge, and the seller collects none. Retail sales still carry 5%, and investment bullion stays zero-rated. Accounting for Deira gold traders keeps those treatments apart.

Three different VAT treatments can appear in one souk, sometimes on the same invoice pad. Mixing them up leaves gold traders holding VAT that nobody can recover. This guide explains who the reverse charge covers, the written declarations it needs, and how retail and investment sales differ. It also shows how a buyer reports the reverse charge in its VAT return.

Who accounts for VAT when gold is sold between UAE traders?

The buyer does, when both parties are VAT-registered and the buyer intends to resell the goods or use them in production. Article 2 of Cabinet Decision No. 127 of 2024 removes the seller's duty to account for it. Instead, it is declared in the buyer's return.

The decision replaced Cabinet Decision No. 25 of 2018, which covered only gold and diamonds. The reverse charge does not apply where the supply is zero-rated under Article 45 of the VAT Law. Sales to consumers and unregistered buyers stay outside the mechanism altogether.

Quick Answer

Under Cabinet Decision No. 127 of 2024, a VAT-registered UAE buyer purchasing gold for resale or production accounts for the VAT itself. The seller collects no VAT once declarations arrive.

Which metals, stones and jewellery does the reverse charge cover?

It covers gold, silver, palladium and platinum, plus natural and synthetic diamonds, pearls, rubies, sapphires and emeralds. Jewellery made from any of those metals or stones is covered too. The condition is that the metal or stone is worth more than the item's other components.

For plain gold chains and bars the value test is obvious. For set jewellery with heavy workmanship or branded design, measuring the components is a judgement, and no published formula settles every case. Keep the costing that supports each classification, especially for high-value designer lines.

Quick Answer

UAE Cabinet Decision No. 127 of 2024 covers four precious metals, five types of precious stone and jewellery made from them. The metal or stone must exceed other components' value.

What declarations must the buyer give before the sale?

Two written declarations, handed over before the date of supply. The buyer must confirm that it is buying for resale or production, and separately confirm that it is registered with the Federal Tax Authority. The seller must receive and keep both documents.

The seller must also verify the buyer's registration using the FTA's approved means, such as the TRN verification service. Under Article 2(4), without the declarations the reverse charge does not apply, and the seller charges 5%. Input tax on that gold then cannot be recovered by the buyer.

Quick Answer

A UAE buyer must give written declarations of purpose and VAT registration before a reverse-charge gold purchase. Without both declarations, the seller charges 5% and the buyer cannot recover it.

Is investment gold zero-rated, and how does retail differ?

Retail sales of gold jewellery to shoppers are standard-rated at 5%, and the seller collects that VAT. Investment precious metals are zero-rated under Article 36 of the VAT Executive Regulation. That covers gold, silver and platinum of 99% purity or more, tradeable in global bullion markets.

The zero rate depends on the metal's purity and form, not the buyer. A 21-carat necklace is never investment gold, however heavy it is. Making charges for repairing or resizing a customer's own gold are services, normally taxed at 5% outside the reverse charge.

Quick Answer

UAE retail gold jewellery sales carry 5% VAT, collected by the seller at checkout. Investment gold, silver and platinum of at least 99% purity in tradeable bullion form is zero-rated.

How does the buyer report the reverse charge?

In its VAT return, as output tax and, where recoverable, input tax together. Take an illustrative Sharjah retailer buying AED 800,000 of 22-carat jewellery from a Deira wholesaler for resale. It declares AED 40,000 of output tax and recovers AED 40,000 of input tax.

The most common error is a seller charging 5% on a trade sale out of habit. The buyer cannot recover VAT that was never properly chargeable and still owes the reverse charge. Unwinding it needs a credit note, a corrected invoice and possibly two voluntary disclosures.

Quick Answer

A UAE buyer declares reverse-charge gold VAT as output tax and recovers it as input tax in the same return. For a fully taxable buyer, the net VAT is zero.

Frequently Asked Questions

Main Takeaways

Since 26 February 2025, VAT-registered UAE buyers account for VAT on gold and precious stones bought for resale or production. Buyers must give written declarations of purpose and registration before the sale. Retail jewellery sales still carry 5%, while investment bullion of 99% purity is zero-rated. Charging 5% on a trade sale by habit creates an error on both sides.

Keep the Three Gold Treatments Apart

Gold VAT in Dubai now runs on three tracks: the reverse charge between registered traders, 5% on retail sales, and 0% on investment bullion. The reverse charge depends on written declarations collected before each trade sale. The value test then decides whether finished jewellery is covered at all. Each track needs its own invoice template and its own VAT code.

Split the year's sales into the three treatments and check that every trade customer's declarations are on file. Correct any trade sale where 5% was charged out of habit, before the next VAT return is filed. Our VAT return filing checklist covers the reconciliation. Exiloz can set up the VAT coding and keep every return consistent across the three tracks.

Sources & References