DUBAI GOLD | 9 May 2025

Everything you need to know about VAT on gold in Dubai starts with comprehending why Dubai is such a hotspot for travelers, traders, and investors interested in buying gold, largely due to its attractive tax policies.

You heard correctly! It’s a widely shared belief that gold shopping in Dubai is tax-free. The Dubai gold wholesale market is known for its superior quality and tax benefits, which draw in buyers from around the world.

Have you, however, checked this well-known proverb with a reliable source?

Are you fully aware of Dubai’s gold VAT tax rates?

Being one of the best wholesale gold traders Dubai, Goldy Precious Jewellery is here to answer all of your questions regarding Dubai’s gold VAT.

Understanding VAT on Gold in Dubai

Understanding VAT on gold in Dubai is crucial for anyone involved in buying, selling, or investing in precious metals. Gold wholesalers in Dubai need to understand the 5% standard VAT in particular because, according to UAE regulations, investment-grade metals are exempt from tax.

Gold is subject to a standard rate of 5% due to the zero-rated tax on investment-grade precious metals established by Articles (36) and (3) of the Federal Decree Law and Executive Regulation on VAT. 

This tax is essential for promoting a sustainable economy and diversifying revenue sources outside of oil. Companies operating in the gold industry need to be aware of certain rules.

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New VAT Regulations for Gold

Important revisions to the VAT laws about gold were made in 2024. Bulk gold suppliers UAE have to conform completely to these refreshes to guarantee compliance.

Old Regulation: Before this VAT change, a business selling gold had to register for VAT in the UAE and then charge VAT. Only after filing a return could the buyer get the UAE VAT back. Businesses purchasing gold and diamonds experienced cash flow issues as a result of this system.

New Regulation: The industry is relieved by the new regulations. If certain requirements are fulfilled, gold jewelry and bullion that is 99% pure or more are exempt from VAT.

The UAE places a strong emphasis on legal and regulatory compliance with its gold market exemption, which is available to companies registered in the UAE. 

For VAT exemptions, the right paperwork—such as invoices and certificates—is essential. 

However, a reverse charge mechanism for the supply of gold and diamond jewelry was introduced by the 2018 Cabinet Decision.

VAT Reverse Charge Mechanism on Supply of Gold Items

If all of the following requirements are satisfied, a registered supplier of gold items, according to Article 1 of Cabinet Decision No. 25 of 2018, will not impose VAT. Gold bullion dealers Dubai additionally benefit from these regulatory updates when trading investment-grade gold.

1. The recipient has a VAT registration.
2. The recipient provides a written declaration to the supplier attesting to the following:

The gold items will either be resold or used by the recipient to manufacture or create other gold items.

On the date of supply, the recipient is registered for VAT.

It is the recipient’s responsibility to determine the tax based on the value of the goods they receive.

The UAE places a strong emphasis on legal and regulatory compliance with its gold market exemption, which is available to companies registered in the UAE. For VAT exemptions, the right paperwork—such as invoices and certificates—is essential. 

However, a reverse charge mechanism for the supply of gold and diamond jewelry was introduced by the 2018 Cabinet Decision.

VAT Charges on Single Composite Supplies of Gold Items

A gold item can be regarded as a single composite supply when the supplier charges a single price that includes the making charge. Wholesale gold jewelry Dubai suppliers especially need to comprehend how composite supply impacts VAT obligations.

This occurs if:

The gold item is the primary component of the supply, and there are also closely related auxiliary components (the making service). To separate them would be unnatural.

Both the gold item and the manufacturing service are supplied by the same supplier.

If all requirements of Cabinet Decision No. 25 are fulfilled, the entire supply of gold items, including the making service, may be eligible for reverse charge treatment.

Both the supplier and the recipient are required to maintain accurate records in this situation. This includes a legitimate tax invoice indicating that the reverse charge mechanism is in effect and displaying the single total price for the gold item.

VAT Charges on Multiple Supplies of Gold Items

If the components of the supply are closely related and are supplied by the same supplier, then a single price for a gold item, including the making charge, may be considered a single composite supply.

24K gold wholesalers Dubai frequently handle numerous supply transactions, so it is important to make sure that the right VAT paperwork is in place to prevent fines.

If all conditions outlined in Cabinet Decision No. 25 are fulfilled, this can be accomplished. A legitimate tax invoice that reflects the entire cost and uses the reverse charge mechanism must be kept on file by both the supplier and the recipient.

Correction Of Errors

According to the new Public Clarification, a supplier is required to make a voluntary disclosure if they have applied the incorrect VAT treatment. Gold trading company in Dubai, such as Goldy Precious Jewellery, have compliance departments that frequently audit VAT practices.

How Does VAT Affect Gold Traders and Tourists in Dubai?

Impact on Traders

Gold bullion (99% pure) sold to another UAE-based company by a UAE-registered gold trader may be exempt from VAT. However, all documentation requirements must be met by the buyer. Bulk gold dealers Dubai can effectively manage VAT and stop cash outflow at the point of sale by utilizing the reverse charge mechanism.

Impact on Tourists

In Dubai, buying gold and related goods is subject to a 5% VAT. Among the lowest VAT rates in the world is this one.

Tourists’ VAT Refund Scheme

The VAT refund on gold in Dubai for visitors is one of the most alluring features of purchasing gold there. Buy gold bars in bulk Dubai opportunities additionally draw savvy tourists searching for investment deals.

To get their money back, travelers need to:

• Buy gold from a retailer who is registered and taking part in the VAT refund program.
• Show your travel documents and legitimate receipts.
• At airports or other exit points, make your claim at the designated refund locations.

Dubai’s appeal as a gold shopping destination is further cemented by this VAT refund system, which offers tourists additional savings.

Conclusion

Dubai’s gold VAT laws have stabilized the market for investors and enhanced cash flow for high-value companies.

For traders, jewelers, and investors in the booming gold industry, these regulations are essential because they guarantee a stable market and a more seamless business environment.

Goldy Precious Jewellery is a good option if you want to purchase gold in Dubai.

We are one of the top gold trading dealers in the area as a global bullion house. We are experts in many well-known bullion gold products.

You can have a smooth gold purchasing experience with Goldy Precious Jewellery.