11/01/2025
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11/01/2025
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DUBAI, Jan 11: The United Arab Emirates (UAE) has updated its Value Added Tax (VAT) regulations concerning the trade of gold and diamonds. Under the new provisions, VAT-registered businesses supplying these precious metals are no longer required to charge or collect VAT from other VAT-registered customers. Instead, the responsibility for reporting VAT shifts to the buyer through a reverse charge mechanism. This adjustment aims to enhance the UAE's position as a global hub for gold and diamond trading by alleviating cash flow burdens on businesses and promoting ease of transactions.
The standard VAT rate in the UAE remains at 5%. However, specific exemptions apply, particularly for investment-grade gold with a purity of 99% or higher. These exemptions are designed to attract investors and traders to the UAE market.
These regulatory changes are part of the UAE's broader strategy to diversify its economy and strengthen its role in the global precious metals market. By implementing such measures, the UAE seeks to create a more business-friendly environment that encourages investment and trade in the gold and diamond sectors
