UAE Precious Metals VAT 2026: Gold, Silver, and Diamond VAT Rules
UAE precious metals VAT guide 2026: reverse charge mechanism for investment gold and silver (B2B), 5% VAT on jewellery retail, diamond VAT treatment, and.
UAE precious metals VAT classification
| Supply | VAT treatment | Notes |
|---|---|---|
| Investment gold (B2B, UAE) | Reverse charge — buyer accounts for VAT | Gold ≥ 99% purity bars, coins, wafers |
| Investment silver (B2B, UAE) | Reverse charge — buyer accounts for VAT | Silver ≥ 99% purity |
| Investment platinum (B2B, UAE) | Reverse charge — buyer accounts for VAT | Platinum ≥ 99% purity |
| Gold jewellery (B2C retail) | 5% VAT | Consumer purchase — standard rate |
| Diamond jewellery (B2C retail) | 5% VAT | Gemstones + setting — standard rate |
| Diamonds (B2B, UAE) | 5% VAT | Not covered by precious metals reverse charge |
| Gold/silver export | Zero-rated | Goods leaving UAE — zero-rated |
| Gold refining services | 5% VAT | Service in UAE — standard rate |
| Gold testing / hallmarking | 5% VAT | Assay services — standard rate |
UAE precious metals reverse charge mechanism
- What is the reverse charge?: For B2B supplies of investment-grade gold (≥ 99% purity), silver, and platinum, the seller does not add VAT on the invoice. Instead, the buyer self-accounts for the VAT — declaring it as both output VAT (as if they made a supply to themselves) and input VAT (as they intend to use it for business). The net result for most buyers is zero VAT cash cost.
- Conditions for reverse charge: Both buyer and seller must be UAE VAT-registered. The metal must meet the investment-grade purity threshold. The buyer must be purchasing for their business (not as a consumer). The seller must issue an invoice clearly stating ‘VAT reverse charge applies — Article 48 UAE VAT Executive Regulations’.
- Why reverse charge?: The mechanism was introduced to prevent VAT fraud in the precious metals market — where sellers collected VAT from buyers but disappeared before remitting it to the FTA (VAT carousel fraud). With reverse charge, no cash VAT changes hands between businesses.
UAE jewellery retail VAT
- Jewellery retail is 5% standard-rated: When a consumer buys gold jewellery, diamond rings, or platinum watches from a UAE retailer — 5% VAT is charged on the full selling price (including the making charges and gemstones, not just the metal value).
- Making charges: Labour and craftsmanship charges (making charges) are part of the jewellery supply — 5% VAT on the total price including making charges.
- Jewellery export: If a UAE jeweller exports jewellery to an overseas customer, the supply is zero-rated. The jeweller must retain export documentation (customs declaration, proof of export).
- Gold souq traders: Small traders in the Dubai Gold Souk who sell B2C are standard-rated if their turnover exceeds AED 375,000. B2B investment gold dealers use the reverse charge as above.
UAE gold dealer, jeweller, or diamond trader with VAT questions?
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See VAT servicesFrequently asked questions
Does the UAE precious metals reverse charge apply to diamonds?
No — the UAE reverse charge mechanism for precious metals covers investment-grade gold, silver, and platinum only. Diamonds are not included. B2B diamond sales between UAE VAT-registered dealers are subject to the normal 5% VAT rules — the seller charges 5% VAT, the buyer recovers it as input VAT. Only a specific designated diamonds reverse charge in certain other jurisdictions (like the UK) applies to diamonds — UAE has not introduced this.
How does a UAE gold dealer invoice under the reverse charge?
The seller issues a VAT invoice showing the price of the investment gold, states ‘Reverse Charge — VAT Article 48 UAE VAT Executive Regulations’, and shows 0% VAT on the invoice. The buyer receives the invoice and makes two entries in their own VAT return: output VAT (as if they collected VAT on the supply) and input VAT (as they are using the gold for business). These offset each other — net VAT impact is zero for the buyer.
Is tourist gold jewellery purchase in UAE VAT refundable?
Yes — UAE operates a Tourist VAT Refund Scheme. Non-UAE residents who buy goods (including gold jewellery) in UAE and export them can claim a refund of the 5% VAT paid at point of purchase. The refund is processed at UAE airports via Planet Tax Free kiosks. Minimum purchase of AED 250, and goods must be taken out of UAE within 90 days of purchase. The retailer must participate in the UAE Tax Refunds for Tourists scheme.
What is the VAT treatment of scrap gold sold by a UAE consumer?
A UAE consumer selling scrap gold to a gold dealer is not making a business supply — no VAT is due on a one-off consumer sale of personal gold items. However, if the dealer is buying scrap gold as an input for refining and resale, the dealer’s subsequent supply of refined investment gold to another B2B buyer would be subject to the reverse charge mechanism. Regular trading in gold — even as an individual — may be treated as a business activity requiring VAT registration.
Official UAE Government Sources