VAT on Gold and Jewellery in the UAE: Investment Gold, Reverse Charge and Retail Sales (2026)

The UAE is one of the world's biggest gold markets, and the VAT rules for gold reflect that. A 24-carat bar can be zero-rated, the same gold made into a necklace carries 5%, and a wholesale sale between two dealers may carry no VAT on the invoice at all because the buyer accounts for it instead. Gold traders also face tighter cash and anti-money-laundering rules than almost any other business.

This guide is for bullion dealers, jewellery wholesalers and retailers, refiners, and diamond and gemstone traders. It covers the VAT treatment of investment precious metals and jewellery, how the domestic reverse charge works, old gold exchanges and tourist refunds, the 2026 rules on cash and supplier checks, and how corporate tax applies, including in free zones such as DMCC.

Quick answer: investment gold, silver and platinum of at least 99% purity, in a form tradeable on global bullion markets, are zero-rated. Jewellery carries 5% on the full selling price, including making charges and stones. Sales of gold, diamonds and certain other precious metals and stones between VAT-registered businesses that will resell them or use them in production are covered by the domestic reverse charge: the seller charges no VAT, and the buyer accounts for it.

Investment precious metals: zero-rated

Supplies of investment precious metals are zero-rated. To qualify, the metal must be:

• gold, silver or platinum,

• of a purity of 99% or more, and

• in a form tradeable in global bullion markets, such as bars, ingots and recognised bullion coins.

Zero-rating applies whether the buyer is a business or an individual. A retail customer buying a 24-carat, 999.9 fine gold bar pays no VAT. Keep purity certificates or assay evidence for every investment product you sell, because without them you can't support the zero rate.

Zero-rated sales count as taxable supplies. That means you must register once they exceed AED 375,000 in 12 months, and you can recover input VAT on your costs.

Jewellery and other gold products: 5%

Anything that doesn't meet the investment test carries 5%. That includes:

• gold jewellery of any carat, including 24-carat jewellery

• gold below 99% purity

• decorative items, watches and accessories made of precious metals

• diamond and gemstone jewellery sold to consumers

VAT applies to the full selling price, including the gold value, the making charges and the value of any stones.

Example: A customer buys a 22-carat bracelet. The gold value is AED 8,000 and the making charge is AED 1,200. VAT is 5% of AED 9,200, which is AED 460, and the customer pays AED 9,660. Applying VAT only to the making charge (AED 60) is a common error that understates VAT by AED 400 on this one sale.

Old gold exchange

When a customer trades in old jewellery against a new piece, VAT is still due on the full price of the new item. The value of the old gold is part of how the customer pays, not a discount on the VAT. Buying old gold from an individual who isn't VAT-registered involves no VAT, so there's nothing to recover on it. If you regularly buy old gold and resell it unaltered, consider whether the profit margin scheme for second-hand goods applies.

Tourist refunds

Retailers registered under the Tax Refund for Tourists Scheme can tag eligible sales so that overseas visitors can reclaim VAT when they leave the UAE. The purchase must meet the minimum spend, currently AED 250 per invoice, and the goods must leave the UAE within 90 days. The retailer still charges VAT at the till; the refund is handled through the scheme operator. Jewellery is one of the most common categories reclaimed under the scheme.

The domestic reverse charge for gold, diamonds and other precious goods

To stop VAT fraud in the wholesale gold chain, the UAE introduced a domestic reverse charge in 2018 under Cabinet Decision No. 25 of 2018. It was later widened by Cabinet Decision No. 127 of 2024 to cover more precious metals and stones, including silver, platinum and palladium, diamonds and certain coloured stones and pearls, and qualifying jewellery whose value comes mainly from those materials.

How it works

When the conditions are met, the seller doesn't charge VAT on its invoice. Instead, the buyer declares the VAT as output tax in its own return and, if it is buying for taxable business use, recovers the same amount as input tax. The net cash effect for an honest buyer is zero, but the VAT can no longer disappear with a seller who collects it and never pays.

The conditions

• Both seller and buyer are registered for VAT in the UAE.

• The buyer is buying the goods to resell them or to use them in producing or manufacturing goods. Gold bought by a jeweller to make jewellery qualifies; gold bought by a company as a gift for staff doesn't.

• The buyer provides a written declaration confirming it is registered and that it is buying for resale or production.

• The seller checks the buyer's TRN is valid before issuing the invoice.

• The invoice states that the reverse charge applies and that the buyer must account for the VAT.

Example: A wholesaler sells AED 500,000 of 21-carat gold to a registered retailer that will turn it into jewellery. The wholesaler's invoice shows no VAT and states that the reverse charge applies. The retailer declares AED 25,000 of output VAT under the reverse charge and claims AED 25,000 of input VAT in the same return. When the retailer sells the finished jewellery to consumers, it charges 5% as normal.

If the conditions aren't met, for example the buyer isn't registered or is buying for its own use, the seller must charge 5% in the normal way. A seller that wrongly applies the reverse charge, without the declaration or a TRN check, is liable for the VAT that wasn't charged.

Cash, supplier checks and anti-money-laundering

The gold trade has traditionally run on cash and long-standing personal relationships. The 2026 rules make that much harder to sustain.

• Cash payments. From 1 October 2026, under Cabinet Decision No. 149 of 2026, input VAT can be blocked on supplies above a threshold, still to be set by Ministerial Decision, when they are paid in cash. See our guide to the new cash payment rules.

• Supplier verification. Under FTA Decision No. 13 of 2026, you must verify suppliers before claiming input VAT, with enhanced checks above AED 375,000 a year from one supplier. Most wholesale gold relationships exceed that. Read our supplier verification guide.

• Anti-money-laundering. Dealers in precious metals and stones are designated non-financial businesses under UAE AML law. They must carry out customer due diligence and report cash transactions of AED 55,000 or more through the goAML system. These obligations are separate from VAT, but the same documents, such as customer ID, source of funds and payment records, support both.

Input VAT recovery for gold businesses

Because both zero-rated investment metal sales and 5% jewellery sales are taxable, gold businesses can generally recover input VAT on their costs, including shop rent, fit-out, security, hallmarking and refining services, which carry 5%. Bullion dealers with mostly zero-rated sales often carry VAT credits and should claim them before the five-year limit applies. Credits from 2018 to 2021 must be used or refunded by 31 December 2026. See how to claim them.

Corporate tax for gold and jewellery businesses

Mainland jewellers and retailers

Jewellery shops and wholesalers pay 9% on taxable profit above AED 375,000. Inventory is often the biggest number in the accounts, so the valuation method matters. Gold price movements can create large gains or losses on stock, and hedging contracts used to manage that risk also affect taxable profit.

Free zone gold traders

Under Ministerial Decision No. 229 of 2025, trading of qualifying commodities is a qualifying activity for a Qualifying Free Zone Person. That covers physical trading in commodities with a quoted price on a recognised exchange, such as gold and silver bullion, plus related hedging and commodity finance. Refining is a processing activity, which can also qualify.

Retail jewellery is different. Selling to individuals is a transaction with natural persons, which is excluded. A free zone company with a retail showroom selling to the public will usually have non-qualifying income, and if that exceeds the lower of 5% of revenue or AED 5,000,000, the whole company is taxed at 9%. Read our guide on free zone versus mainland corporate tax for how the test works.

Related-party trading

Gold groups often move metal between related companies in different free zones and countries. Those transactions must be priced at arm's length, which for gold usually means using quoted market prices, and above the thresholds they must be disclosed with the corporate tax return.

Gold and jewellery VAT checklist

• Keep purity evidence for every zero-rated investment product

• Charge 5% on the full jewellery price, including making charges and stones

• Collect a written declaration and check the TRN before applying the reverse charge

• Make sure reverse charge invoices carry the required wording

• Account for reverse charge purchases in your own VAT return

• Stop cash payments to suppliers and verify those paid over AED 100,000 a year

• Report cash transactions of AED 55,000 or more through goAML

• Check whether your free zone income is really qualifying

Frequently asked questions

Is VAT charged on gold in the UAE?

Investment gold of 99% purity or more, in bar or bullion coin form, is zero-rated. Gold jewellery carries 5% VAT on the full price.

Is VAT charged on making charges?

Yes. VAT applies to the full price of the jewellery, including gold value, making charges and stones.

What is the reverse charge on gold?

Between two VAT-registered businesses, where the buyer will resell the gold or use it in production, the seller charges no VAT and the buyer accounts for it in its own return.

Can tourists get VAT back on gold jewellery?

Yes, if they buy from a retailer in the Tax Refund for Tourists Scheme, spend at least AED 250 and take the goods out of the UAE within 90 days.

Do DMCC gold traders pay corporate tax?

Bullion trading can qualify for the 0% free zone rate as trading of qualifying commodities. Retail sales to individuals are non-qualifying and can push the company into the 9% rate.

Keeping your gold business compliant

Gold VAT is unforgiving because the values are so high: a single wrong reverse charge invoice can mean tens of thousands of dirhams in tax. A review of your invoice templates, buyer declarations and supplier files is the best protection. Our VAT and corporate tax team works with bullion dealers and jewellers on VAT returns, reverse charge reviews and corporate tax filing. Book a free consultation to get started.

More sector guides: VAT for trading companies, VAT for logistics, VAT for e-commerce.

This article is general information based on UAE VAT and corporate tax legislation as of October 2026, including Federal Decree-Law No. 8 of 2017 as amended, Cabinet Decision No. 25 of 2018, Cabinet Decision No. 127 of 2024, Cabinet Decision No. 149 of 2026, FTA Decision No. 13 of 2026 and Ministerial Decision No. 229 of 2025. It is not tax advice. Check your specific position with the Federal Tax Authority or a qualified adviser.