UAE gold VAT, trading rules: What it means for shoppers, traders, investors
Gold is big business in the UAE—here’s how the new VAT rules affect buyers and sellers
Dubai: The UAE is one of the biggest players in the global gold market. In fact, in 2023 alone, it exported around $47 billion worth of gold, making it the second-largest exporter in the world. Dubai, in particular, has become a favourite for gold shoppers and dealers alike—thanks to its wide variety, competitive prices, and tax-friendly trade zones.
But if you’re buying or selling gold in the UAE today—whether as a business or as a shopper—it’s important to understand how VAT (Value Added Tax) applies to different types of gold.
How VAT applies to gold in the UAE
In general, most goods in the UAE are charged a 5% VAT, and gold is no exception. But not all gold is treated the same way when it comes to taxes.
If the gold you’re buying is investment-grade, meaning it’s at least 99% pure and sold in forms like bars, ingots, or bullion coins, it is usually zero-rated—which means no VAT is charged. But if you’re buying gold jewellery, VAT does apply, and you’ll be paying the standard 5% rate.
This makes a big difference for buyers who are purchasing gold for investment rather than personal use. It also helps UAE gold businesses stay competitive in global markets like Switzerland and Singapore, where similar tax rules apply.
What’s changed with reverse-charge rule?
In 2024, the UAE introduced a new rule called the reverse-charge mechanism for the gold trade. This is especially important for business-to-business (B2B) transactions involving VAT-registered companies.
Here’s how it works: Instead of the seller charging VAT at the time of sale, the buyer declares and pays the VAT directly in their own tax return. This shift improves cash flow for businesses, since they don’t have to pay VAT upfront and then wait to claim it back later.
But this only applies if both parties are VAT-registered in the UAE, and the gold is being bought for resale or further manufacturing—not for personal use.
If you’re a shopper or a non-registered business, you’ll still see VAT included in your purchase price.
Why this matters to UAE-based businesses
If you're a shopper: Expect to pay VAT on gold jewellery. You can't benefit from reverse-charge or zero-rating.
If you're an investor: Stick to 99% pure gold bars or coins to buy VAT-free.
If you're a gold trader: Make sure you and your buyer are both VAT-registered to use reverse-charge.
Required documents for VAT-free, reverse-charge gold
To qualify for the tax benefits under UAE gold trading rules, businesses need to keep the following paperwork ready:
Tax Invoice – Must include full transaction details and TRNs.
Purity Certificate – Confirms the gold is at least 99% pure.
TRN of Buyer & Seller – Proves both parties are VAT-registered.
Written Declarations – Needed if the gold is for resale or manufacturing.
Sales Contract – Outlines VAT treatment and product details.
Import/Export Documents – Proves how and where the gold was moved.
Bank Statement or Receipt – Confirms matching payment and helps during audits.
Bottom line?
Whether you’re buying jewellery at the Gold Souk or dealing in large volumes of bullion in Dubai’s free zones, VAT rules can impact your bottom line.
As long as you know the difference between investment-grade and consumer-grade gold, and understand how the reverse-charge system works, you can make smarter decisions—either as a buyer or a business.
With new digital tax systems and e-invoicing requirements also rolling out, keeping your documentation in order has never been more important. Gold may be timeless—but in the UAE, the way it’s taxed is changing fast.
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