A UAE jewellery shop should keep stock in grams by karat, not just piece counts, record old gold taken in exchange as a separate purchase, show making charges within the taxable sale, and keep customer identification records for cash sales. Its Corporate Tax return for a December 2025 year end is due 30 September 2026, and missing records cost AED 10,000.
- You run a jewellery shop, gold souk outlet or gold trading company in the UAE
- You accept customers’ old gold as part payment for new pieces
- You price pieces as gold weight plus a making charge
- You take cash from walk-in customers for high-value sales
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What tax and record duties apply to a jewellery shop in the UAE?
A jewellery shop trading through a UAE company must register for Corporate Tax and file annually, register for VAT once taxable supplies plus imports pass AED 375,000, and meet anti-money laundering duties because dealers in precious metals and stones are designated non-financial businesses. The three sets of records overlap, so one ledger should serve all of them.
| Business | Corporate Tax | VAT | Extra obligation |
|---|---|---|---|
| Retail jewellery shop (mainland) | Registers and files; 9% on taxable income above AED 375,000 | Jewellery sales at 5% once registered | AML customer due diligence |
| Bullion or investment gold trader | Registers and files | Investment-grade metal of 99% purity or more is zero-rated | AML customer due diligence |
| Shop with revenue up to AED 3M | Small Business Relief electable for periods ending by 31 December 2029; still files | Unchanged | Revenue must include old gold taken in part payment |
| Free zone gold trader seeking 0% | Qualifying Free Zone Person conditions, including audited financial statements | Goods in designated zones follow their own rules | Qualifying income tests on every customer type |
The AML framework is now Federal Decree-Law No. 10 of 2025, in force since 14 October 2025, with Cabinet Resolution No. 134 of 2025 as its executive regulation. Reports go through goAML, which is run by the UAE Financial Intelligence Unit. Our AML compliance guide covers the programme itself.
How should a jeweller keep stock by weight and purity and record making charges?
Keep the stock ledger in grams for each karat, with stones and watches tracked separately by piece, and record each sale’s gold value and making charge on separate invoice lines. That gives you a weight reconciliation the piece count can never give, and a clean view of the margin you actually earn.
The stock ledger by weight and purity
Weigh the whole shop’s stock by karat at least monthly and compare with the ledger. A 150-gram shortfall in 21K is a loss you can see; a missing bracelet among 900 pieces usually is not.
| Ledger column | Example entry | Why it matters |
|---|---|---|
| Karat | 22K | Different purity means different value per gram |
| Gross weight in grams | 48.20 g | Physical count checks against this |
| Stone or non-gold weight | 1.10 g | Removed to reach net gold |
| Net gold weight | 47.10 g | Basis for cost and valuation |
| Cost per gram at purchase | From the supplier invoice | Lower of cost and net realisable value |
| Source | Supplier, old-gold exchange or melt | Traces weight movements |
Making charges
The making charge is part of the price of the jewellery, so on a retail piece VAT is charged on the gold value and the making charge together. Record the two on separate revenue lines anyway: gold value largely passes through at market price, while making charges are your real gross margin. A shop that discounts making charges to 0% during a festival should see that immediately in its monthly figures.
Customer invoices must be tax invoices, or simplified invoices only for consumer sales under AED 10,000, issued within 14 days. The rules on investment metal are in our precious metals VAT guide.
How do you account for old-gold exchanges, gold price changes and AML records?
Record an old-gold exchange as two transactions (a full-value sale of the new piece and a purchase of the old gold into stock), value stock at the lower of cost and net realisable value when gold prices move, and file customer due diligence with the sale it relates to.
Old-gold exchange transactions
A customer buys a AED 18,000 necklace and hands over old gold valued at AED 7,000, paying AED 11,000 in cash. Book AED 18,000 of sales, AED 7,000 of old gold into stock at its tested weight and karat, and AED 11,000 received. Netting it to an AED 11,000 sale understates revenue, loses 7,000 dirhams of stock from the ledger and breaks the weight reconciliation. Keep the weighing slip, purity test and customer ID for each exchange. The VAT treatment of the trade-in element should be confirmed once for your shop and then applied consistently.
Gold price revaluation
Under the accounting standards most UAE SMEs use, inventory is carried at the lower of cost and net realisable value. When gold falls below what you paid, write stock down; when it rises, you do not mark stock up, the gain shows when you sell. Corporate Tax starts from accounting profit, so a year-end write-down reduces taxable income only if it is properly calculated. Our inventory accounting guide covers valuation methods.
AML and KYC records for cash sales
For cash sales that trigger customer due diligence under your AML programme, keep a copy of the customer’s ID, the invoice, the payment record and any source-of-funds note in the same file as the sale. Tax and AML reviewers both start from the invoice, so one numbered file per sale answers both. Keep cash takings banked in full and reconciled daily, since unexplained cash gaps are a red flag for either review.
What does the month-end close look like for a jewellery shop?
A jewellery shop’s month-end close is seven steps completed within 10 working days, ending in a weight reconciliation and valuation that feed straight into the quarterly VAT 201 and the annual Corporate Tax return.
Reconcile daily sales to cash, cards and bank
Match POS sales to card settlements and bank deposits, and confirm every cash sale was banked. Investigate any day where takings and deposits differ.
Post old-gold exchanges gross
For every exchange slip, confirm the full sale was recorded and the old gold was added to stock by weight and karat at its agreed value.
Record supplier purchases by weight
Post supplier and wholesaler invoices with grams, karat, making charges and VAT, and add the weight to the stock ledger.
Weigh and reconcile stock by karat
Weigh physical stock for each karat and compare with the ledger. Record melts, repairs sent out and consignment pieces separately so they are not counted as losses.
Check valuation against current prices
Compare cost per gram with current net realisable value and book any write-down.
File AML records and prepare VAT
Confirm each due diligence file is complete. At quarter end, split standard-rated jewellery from zero-rated investment metal, then file VAT 201 by the 28th of the following month.
Close the year for Corporate Tax
At year end, finalise stock valuation, confirm revenue includes old gold taken in exchange before testing Small Business Relief, and file on EmaraTax within 9 months.
What documents should a gold and jewellery trader keep?
Keep documents that prove every gram in and out, every sale’s value and every customer check, for 7 years for Corporate Tax.
- Supplier invoices showing weight, karat, making charge and VAT
- Stock ledger in grams by karat, with monthly weighing sheets
- Old-gold exchange slips with weight, purity test and customer ID
- Sales invoices, simplified invoices under AED 10,000 and credit notes
- POS, card terminal and bank deposit reconciliations
- Melting, repair and consignment records with weights out and back
- Customer due diligence files for sales requiring them
- Year-end stock valuation with the gold prices used
Tax deadlines for jewellery shops in 2026 and 2027
For jewellers with a December 2025 year end, the Corporate Tax return and payment are due 30 September 2026. VAT returns and e-invoicing dates follow.
Clean gold & jewellery traders books make the return quick, and our Corporate Tax return filing service prepares and reviews it with a fixed quote in 24 hours.
| Item | Date |
|---|---|
| Corporate Tax return and payment, December 2025 year end | 30 September 2026 |
| VAT 201 return and payment | 28th of the month after each tax period |
| Tax invoice issue | Within 14 days of the sale |
| E-invoicing provider, revenue under AED 50M | By 31 March 2027; go-live 1 July 2027 |
| E-invoicing provider, revenue AED 50M or more | By 30 October 2026; go-live 1 January 2027 |
| Small Business Relief | Periods ending on or before 31 December 2029 |
E-invoicing requirements for smaller shops are explained in our e-invoicing guide for SMEs.
What FTA penalties can a jewellery business face?
A jewellery business with incomplete records faces AED 10,000 for a first violation, AED 2,500 for each invoice not issued and monthly penalties on late returns. VAT amounts follow Cabinet Decision 129/2025 (from 14 April 2026) and Corporate Tax amounts Cabinet Decision 75/2023 as amended. AML penalties sit under separate law and are not covered here.
| Violation | VAT | Corporate Tax |
|---|---|---|
| Records not kept | AED 10,000 for a first violation | AED 10,000; AED 20,000 repeated |
| Arabic records not provided on request | AED 5,000 | Records must be produced |
| Tax invoice or credit note not issued | AED 2,500 per case | Not applicable |
| Late return | AED 1,000; AED 2,000 repeated within 24 months | AED 500 a month for 12 months, then AED 1,000 a month |
| Late payment | 14% a year, calculated monthly | 14% a year, calculated monthly |
| Incorrect return | AED 500; AED 2,000 repeated | Tax difference can be assessed |
Here is how it adds up for a busy souk shop. Twenty cash sales in a festival month recorded on handwritten slips with no invoice: 20 x AED 2,500 = AED 50,000. A records penalty when stock cannot be traced: AED 10,000. One late VAT return: AED 1,000. That is AED 61,000 from one bad quarter.
Could your stock records survive an FTA review?
We review one month of your weight ledger, exchanges and sales invoices and list what an FTA review would flag.
6 accounting mistakes jewellery shops make
The mistake that causes most damage in jewellery books is counting stock by pieces only, because gold value lives in grams and purity, and a piece count cannot detect losses, melts or mislabelled karats.
- Stock counted by piece only. Weight losses go unnoticed, year-end stock is guessed, and the FTA can treat the stock records as inadequate.
- Old-gold exchanges not recorded. Sales are understated, stock weight appears from nowhere, and revenue for the Small Business Relief test is wrong.
- Making charges discounted off the books. Handwritten discounts without credit notes leave invoices that do not match takings.
- Investment gold and jewellery mixed. Zero-rated and standard-rated sales in one line produce an incorrect VAT return.
- Cash takings not banked in full. Paying suppliers from the till breaks the cash trail both tax and AML reviewers follow.
- No write-down when gold prices fall. Stock is overstated and profit, and therefore Corporate Tax, is overstated with it.
More general slips are in our guide to UAE bookkeeping errors.
What routine keeps a gold shop's books safe from penalties?
A gold shop stays safe with daily cash discipline, a monthly weigh-in and a quarterly VAT review, all built on one business account and numbered invoices.
- Bank all takings into business accounts; never pay suppliers from the till
- Reconcile POS, card settlements and bank every month
- Close within 10 working days, including the weight reconciliation by karat
- Record every old-gold exchange gross, with weighing slip and ID
- Issue an invoice for every sale and a credit note for every return
- Accountant review of zero-rated and standard-rated sales before each VAT return
- Keep records for 7 years and be able to provide Arabic translations
- Check stock valuation against gold prices at every quarter end
Books missing, returns late or an FTA letter for your jewellery shop?
Rebuild from bank statements, supplier invoices, POS data and a physical weigh-in, agree opening stock in grams and value, then file all overdue returns. The method is in our catch-up bookkeeping guide, and our missed Corporate Tax deadline guide covers the first steps after 30 September.
If past VAT returns mixed zero-rated and standard-rated sales or omitted exchanges, file a voluntary disclosure: the penalty is 1% a month of the tax difference before an FTA audit notice and 15% plus 1% a month after one.
A penalty you believe is wrong can be challenged through reconsideration within 40 business days, then at the Tax Disputes Resolution Committee. Our reconsideration guide explains the process.
Late returns or an FTA letter for your shop?
Send the letter or your latest VAT return and a qualified accountant will explain the safest way to fix it.
Worked example: a Dubai gold souk shop that netted its exchanges
An illustrative Dubai jewellery shop with a December 2025 year end recorded sales of AED 2,700,000 and claimed Small Business Relief. Its sales were recorded net of AED 550,000 of old gold taken in exchange, and no one reconciled stock by weight.
| Item | Working | AED |
|---|---|---|
| Sales as recorded, net of exchanges | POS reports | 2,700,000 |
| Old gold taken as part payment | Exchange slips rebuilt | 550,000 |
| True revenue | 2,700,000 plus 550,000 | 3,250,000 |
| Small Business Relief | Revenue above AED 3M | Not available |
| Taxable income after clean-up | Reconciled accounts | 690,000 |
| Corporate Tax due | 9% x (690,000 minus 375,000) = 9% x 315,000 | 28,350 |
| Records penalty if stock records fail review | First violation | 10,000 |
| Late return if filed 2 months late | 2 x AED 500 | 1,000 |
| Monthly bookkeeping for a year, from | 12 x AED 599 | 7,188 |
Here the error runs the other way from most businesses: netting exchanges made the shop look eligible for relief it could not claim, leaving AED 28,350 of tax unpaid on a return that would be wrong. Correcting before filing avoids an assessment and a penalty for an incorrect return. Catch-up work is quoted as a fixed fee after a look at your stock and sales records.
Shop manager, freelance accountant or firm for a jewellery business?
A shop manager can run the counter, but weight-based stock, exchanges and zero-rating need an accountant who reconciles grams to dirhams every month.
| Shop manager | Freelance accountant | Accounting firm | |
|---|---|---|---|
| Cost | Staff time, no fee | Varies widely | Fixed monthly fee; Paci from AED 599/month |
| Weight and karat reconciliation | Informal | Depends on jewellery experience | Monthly with valuation |
| Old-gold exchange posting | Often netted | Varies | Posted gross with support |
| VAT mix of 0% and 5% sales | Rarely separated | Sometimes | Reviewed before each return |
| Best for | Single counter with low volume | Small shops with simple stock | Multi-counter shops and gold traders |
See what to expect from outsourced bookkeeping, and for wider retail controls bookkeeping for retail shops. Our accounting and bookkeeping service for jewellers gives a fixed quote within 24 hours.
What jewellery and gold trading owners actually ask us
What special tax treatment and AML record-keeping applies to trading gold bullion and precious metals?
Investment-grade precious metals of 99% purity or more are zero-rated for VAT, while jewellery is standard-rated at 5%, and further rules apply to some supplies between dealers, covered in our precious metals VAT guide. As a dealer in precious metals you also run AML customer due diligence under Federal Decree-Law No. 10 of 2025. Keep Corporate Tax records for 7 years.
Our shop still keeps sales and purchase receipts on paper and scans them to the accountant. Is that enough for VAT?
Paper is acceptable if the documents are complete and retrievable, but check what they are. Sales of AED 10,000 or more need a full tax invoice, since a simplified invoice only covers consumer sales below that, and every invoice is due within 14 days. Records not kept cost AED 10,000 for a first violation, and e-invoicing will replace paper for most shops from 1 July 2027.
A customer pays partly with old gold. Do we record only the cash we received?
No. Record the full sale value, the old gold as stock at its tested weight, karat and agreed value, and the cash or card received for the balance. Recording only the cash understates revenue and leaves gold in the safe that the ledger cannot explain.
Gold prices dropped after we stocked up for the season. Do we have to change our stock value?
If the price you can realise falls below cost, write stock down to net realisable value at the reporting date. If prices recover before you sell, the margin appears on sale. Do not revalue stock above cost.
Frequently asked questions
Is VAT charged on making charges for gold jewellery in the UAE?+
Yes. For jewellery that is not investment-grade metal, VAT at 5% applies to the full selling price, which includes both the gold value and the making charge. Record them as separate lines for margin analysis, but charge VAT on the total.
How should a gold trading company in Dubai value its stock at year end?+
Value stock at the lower of cost and net realisable value, by karat and weight, using a consistent cost method. Record the gold prices and weights used in a valuation schedule, because the year-end stock figure drives your profit and your Corporate Tax.
Do jewellery shops need a separate AML record system?+
Not necessarily separate, but complete. Customer identification, sale invoices and payment records should be retrievable together for any sale that required due diligence. Reports go through goAML, run by the UAE Financial Intelligence Unit. Our AML compliance guide covers the full programme.
Can a jewellery shop use Small Business Relief?+
Yes, if revenue is AED 3M or less in the relevant period and every earlier one, for periods ending by 31 December 2029, and you still file a return. Revenue must include the value of old gold accepted as part payment, which pushes many busy shops over the limit.
Is gold jewellery bookkeeping different from general retail bookkeeping?+
The foundations are the same, but jewellers track value by weight and purity, handle exchanges that combine a sale and a purchase, and face price swings in their stock. General retail relies on unit counts and shrinkage percentages. The Corporate Tax side is covered in Corporate Tax for gold and jewellery traders.
How should a jeweller handle petty cash at the counter?+
Keep a fixed petty cash float separate from sales takings, with a voucher and receipt for every payment, and top it up by cheque or transfer. Never pay suppliers from sales cash. Our petty cash guide covers controls and VAT on small purchases.
Get your jewellery shop's books reviewed for free
In a free 15-minute review we check your stock by weight, old-gold exchange posting, making charge records and how they feed your VAT and Corporate Tax returns. You get a fixed quote for monthly or catch-up bookkeeping within 24 hours.
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- FTA: Registration for VAT
- FTA: VAT Executive Regulations (consolidated)
- FTA: Small Business Relief guide (PDF)
- FTA: Waiver of penalties
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.