On Jan. 16, UAE GVT issued decision re precious stones and metals.
UAE GVT issued Cabinet Decision 127/2024, expanding the application of Reverse Charge Mechanism for precious metals and stones among VAT-registered businesses.
Overview
Repealed Dec 25/2018 on application of VAT on gold, diamonds for registered dealers.
New Decision clarifies that the reverse charge mechanism’s scope has been expanded.
Included precious metals (gold, silver, palladium, and platinum), in addition to precious stones (natural and manufactured diamonds, pearls, rubies, sapphires, and emeralds).
As well as jewelry made from any of these precious metals or stones, provided that the value of the precious metals or stones exceeds the value of other components.
Seeks to bring significant benefits to precious metals, stones trading sector in UAE.
The VAT-registered customer will be responsible for calculating and for declaring the VAT on their purchases of these goods in addition to reporting it in their VAT return.
Reflect government commitment to support precious metals, gemstones trading sector.
Effectiveness
Decision shall come into effect 60 days from the date of publication in official gazette.
Regulators
UAE GVT
Entity Types
CNSM; Corp
Reference
PR, 1/16/2025; OG 790, 12/27/2024; Dec 127/2024, 12/16/2024; Rpl Dec 25/2018;
