June 20, 2025 | Dubai, UAE – With over 9.1% global exports, estimated to be at $46.8 billion, UAE is known for its gleaming business. Whether one wishes to trade, invest, or simply shop for adornments, UAE continues to be a popular favourite due to the low UAE Gold VAT taxes and comparatively lower prices. If you are considering gold trades, it becomes important to know the rules and the rate applied on UAE Gold VAT.
What is the VAT Tax in UAE
Before diving into UAE Gold VAT, knowing VAT becomes important. VAT (Value Added Tax) refers to indirect taxes paid on every stage of goods from production to manufacturing and till it reaches the customers. In many cases, people can also claim VAT back and pay only the difference between what they are collecting and what they have already paid, called “Net VAT”. The standard VAT rate in the UAE is 5%; however, since gold belongs to the precious metals category of goods, the UAE Gold VAT rules differ slightly. VAT is governed by Federal Decree-Law No.8 of 2017 and is overseen by the Federal Tax Authority (FTA).
UAE Gold VAT Taxes
UAE Gold VAT is free from impositions of GST or Sales Tax on the purchases, unlike many other countries; however, the UAE government introduced the reverse charge mechanism in 2024 for special metals and gemstones. Under the Reverse Charge Mechanism (RCM), the liability to pay tax is on the recipient of the supply of goods and services instead of the supplier in respect of notified categories of supply, such as the UAE Gold VAT.
The trading of gold in the UAE is subject to the standard UAE Gold VAT rate of 5%, which means that the gold jewellery one purchases will be taxed at 5%. However, investment-grade gold is different with its purity is higher than 99%, like gold coins, bullions, and bars. This kind of gold may qualify for zero-rated treatment and will be exempt from tax payment. Registered businesses can also recover UAE Gold VAT by documenting that gold is used for taxable businesses, while B2B businesses use a reverse charge mechanism.
UAE Gold VAT Tax Exemption Rules
Here is when the gold qualifies for tax exemption :
- The purity of gold should be a minimum of 99%. Below that, gold is not considered for the UAE Gold VAT exemption.
- Only gold that is tradable in the bullion market is exempt, such as ingots, bullion,s and bars.
- The transaction must occur between two VAT-registered businesses.
- Retail sale owners are not applicable
- The acquired gold should not be used in the manufacturing of jewellery or for personal use.
- The gold should either be resold or invested.
Documents and Compliance for UAE Gold VAT Exemption
Make sure to have the following documents handy when going for the UAE Gold VAT tax exemption :
- Tax invoice
Complete breakdown of transaction showing gold’s cost, charges, TRN of both parties and VAT.
- Purity certificate
Proof that the gold is 99% pure or higher for VAT exemption.
- TRN of Buyer and Seller
Confirming both businesses are VAT registered.
- Import contract
If gold was brought from outside of UAE, the contract shows its value and duty charges, if applicable.
- Export contract
Proves that gold has left the UAE to claim zero-rated VAT.
- Sales contract
Outlines nature of the gold sold, any additional charges and handling of VAT during the transaction.
- Bank statement
Backs up the payments correspondence with the invoice.
On initial introduction of UAE Gold VAT at 5% in January, 2018, the taxes made the price rise higher for retail owners and everyday buyers. This resulted in slight hesitancy and the purchase leaning towards simpler designs or higher purity bullions. However, the zero-rate treatment attracted investors and dealers, boosting the appeal. This also cemented UAE as a global gold centre while attracting volume and foreign capital.
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