Is VAT charged on gold and diamonds?

Answered by TI from the Federal Tax Authority’s own law · 15 September 2026. Guidance, not tax advice: rely on the official text.

TI AssistantClear answerTI Public

It depends. Investment-grade gold (99% pure and tradeable) is VAT-free. For other gold and diamonds sold to a VAT-registered business, the seller does not charge VAT – the buyer accounts for it under reverse charge.

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The detail

Under Article 36 of the Executive Regulation, investment precious metals (gold, silver, platinum of at least 99% purity and tradeable form) are zero-rated. Other supplies of precious metals and stones (including gold and diamonds not meeting that standard) between VAT-registered persons in the UAE are subject to the domestic reverse charge under Cabinet Decision No. 127 of 2024: the supplier does not charge VAT and the recipient must account for it, provided the recipient is registered and intends to resell or use the goods to produce or manufacture precious goods (per FTA guidance).1 2 3 4

What the law says

Investment precious metals (defined as gold, silver and platinum of at least 99% purity and in a form tradeable in global bullion markets) are zero-rated under Article 36 of the Executive Regulation of the VAT Law.2
Cabinet Decision No. 127 of 2024 applies a domestic reverse charge to supplies of precious metals (gold, silver, palladium, platinum) and precious stones (including diamonds) between registrants in the UAE, meaning the recipient accounts for VAT on the supply.1 3
FTA guidance confirms the reverse charge applies only when the recipientame is registered for VAT in the UAE and intends to resell the goods or use them to produce or manufacture precious goods, including partial or full production.4 Based on FTA guidance

What it depends on

Zero-rating applies only if the metal is gold, silver or platinum of at least 99% purity and in a tradeable form (e.g., bars, coins) – other forms or purities are not zero-rated.2
The reverse charge applies only when both supplier and recipient are VAT-registered in the UAE and the supply is of goods as defined in the Decision (including jewellery where the precious metal/stone value exceeds other components).1 3
The recipient must intend to resell the goods (at wholesale or retail) or use them to produce/manufacture precious goods; otherwise the reverse charge does not apply.4 Based on FTA guidance

Check before you rely on it

Check whether the gold meets the 99% purity and tradeable-form test for zero-rating.
Verify that both you and the buyer are VAT-registered in the UAE.
Confirm the buyer’s intention to resell or manufacture the goods before applying reverse charge.

Sources (4) — read the official text

1The Application of the Reverse Charge Mechanism on Precious Metals…PreambleCabinet Decision

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This is not an official Translation: The Application of the Reverse Charge Mechanism on Precious Metals and Precious Stones among Registrants in the State for the Purposes of Value Added Tax Cabinet Decision No. 127 of 2024 – Issued 16 December 2024 – (Effective from 26 February 2025) The Cabinet has decided: - Having reviewed the Constitution, - Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments, - Cabinet Decision No. 52 of 2017 on the Executive Regulation of Federal DecreeLaw No 8 of 2017 on Value Added Tax, and its amendments, - Cabinet Decision No. 25 of 2018 on the Mechanism of Applying Value Added Tax on Gold and Diamonds Between Registrants in the State, and - Pursuant to what was presented by the Minister of Finance and approved by the Cabinet.

Official PDF, p. 1Captured from the FTA website on 9 Sep 2026
2VAT Executive RegulationArticle 36Executive Regulation

Article 36 – Zero-rating of precious metals

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Article 36 – Zero-rating of precious metals 1. The supply or import of investment precious metals shall be zero-rated. 2. The phrase “investment precious metals” means gold, silver and platinum that meet the following standards: a. The metal is of a purity of 99 percent or more. b. The metal is in a form tradeable in global bullion markets.

Official PDF, p. 29Captured from the FTA website on 10 Sep 2026
3The Application of the Reverse Charge Mechanism on Precious Metals…Article 1Cabinet Decision

Article 1 – Definitions

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Article 1 – Definitions The definitions contained in Federal Decree-Law No. 8 of 2017 referred to above shall apply to this Decision, as an exception to that, the following words and expressions shall have the meaning assigned against each, unless the context requires otherwise: Cabinet Decision No.127 of 2024 – As published by the Ministry of Finance 1 Goods : Precious Metals, Precious Stones and jewelry made of any Precious Metals or Precious Stones, or a combination thereof, provided that the value of the Precious Metals or Precious Stones exceeds the value of other components. Precious Metals : Gold, silver, palladium and platinum. Precious Stones : Natural and manufactured (synthetic) diamonds, pearls, rubies, sapphires and emeralds.

Official PDF, pp. 1–2Captured from the FTA website on 9 Sep 2026
4Application of the Reverse Charge Mechanism on Precious Metals and…FTA guidance

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components. For the purposes of the domestic reverse charge تُعرّ ف المعادن،وألغراض آلية االحتساب العكسي المحلي :الثمينة واألحجار الكريمة كما يأتي mechanism, precious metals and precious stones are defined as the following: • Precious metals: Gold, silver, palladium and . الذهب والفضة والبالديوم والبالتين:• المعادن الثمينة platinum. • Precious stones: Diamonds (natural and (الطبيعي manufactured/synthetic), pearls, rubies, والزفير األلماس والياقوت :الكريمة واللؤلؤ • األحجار )االصطناعي/والمُ صنّع .والزمرد sapphires and emeralds. شروط تطبيق آلية االحتساب العكسي المحلي Conditions for the domestic reverse charge All of the following conditions must be met to يجب استيفاء جميع الشروط التالية لتطبيق آلية االحتساب apply the domestic reverse charge on the supply 2 :العكسي المحلي على توريد السلع of the Goods:2 • The Recipient must be registered for VAT in يجب أن يكون المستلم مُ سجالً لضريبة القيمة المضافة .في الدولة the UAE. • • The Recipient must intend to resell the يجب أن يقصد المستلم إعادة بيعها أو استعمالها إلنتاج Precious Goods or use them to produce or .أو تصنيع السلع الثمينة manufacture Precious Goods. The term "resell" refers to an activity that يشير مصطلح "إعادة البيع" إلى نشاط يُشكّل جزءا ً من forms part of the business of the Recipient. ويمكن أن تتمّ إعادة البيع هذه إما على.أعمال المستلم This resale can occur at either the wholesale .مستوى البيع بالجملة أو بالتجزئة or retail level. The phrase "producing or manufacturing" تشمل عبارة "اإلنتاج أو التصنيع" عمليات اإلنتاج أو includes both partial and full production or إذا كان، على سبيل المثال.التصنيع الجزئي أو الكامل manufacturing processes. For instance, if a المستلم يحصل على مكونات شبه ُمصنّعة لمجوهرات Recipient acquires semi-finished jewellery فيُعتبر،لدمجها في منتج نهائي لمجوهرات سيتمّ بيعه 4/14 •

Official PDF, p. 4Captured from the FTA website on 9 Sep 2026

Helpful?

What the law says:
- Investment precious metals (defined as gold, silver and platinum of at least 99% purity and in a form tradeable in global bullion markets) are zero-rated under Article 36 of the Executive Regulation of the VAT Law. [2]
- Cabinet Decision No. 127 of 2024 applies a domestic reverse charge to supplies of precious metals (gold, silver, palladium, platinum) and precious stones (including diamonds) between registrants in the UAE, meaning the recipient accounts for VAT on the supply. [1, 3]
- FTA guidance confirms the reverse charge applies only when the recipientame is registered for VAT in the UAE and intends to resell the goods or use them to produce or manufacture precious goods, including partial or full production. [4]

What it depends on:
- Zero-rating applies only if the metal is gold, silver or platinum of at least 99% purity and in a tradeable form (e.g., bars, coins) – other forms or purities are not zero-rated. [2]
- The reverse charge applies only when both supplier and recipient are VAT-registered in the UAE and the supply is of goods as defined in the Decision (including jewellery where the precious metal/stone value exceeds other components). [1, 3]
- The recipient must intend to resell the goods (at wholesale or retail) or use them to produce/manufacture precious goods; otherwise the reverse charge does not apply. [4]

Check before you rely on it:
- Check whether the gold meets the 99% purity and tradeable-form test for zero-rating.
- Verify that both you and the buyer are VAT-registered in the UAE.
- Confirm the buyer’s intention to resell or manufacture the goods before applying reverse charge.

Sources:
1. The Application of the Reverse Charge Mechanism on Precious Metals… — Preamble
2. VAT Executive Regulation — Article 36
3. The Application of the Reverse Charge Mechanism on Precious Metals… — Article 1
4. Application of the Reverse Charge Mechanism on Precious Metals and… — p. 4

Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer

Is VAT charged on gold and diamonds?

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