- September 29, 2026
- Posted by: Hussain Sidhique
- Category: Blog
Gold has always drawn buyers to Dubai, and one of the first questions most of them ask is simple: is there VAT on gold in UAE, and how much does it add to the final bill? The short answer is that most retail gold jewellery purchases carry 5% VAT. However, the gold tax in UAE involves more than the standard retail rate: qualifying investment precious metals can be zero-rated, while eligible B2B transactions may fall under the reverse charge mechanism. The framework for qualifying precious goods was also updated in 2025.
This guide breaks down the current gold tax in UAE rules in plain terms, including who pays VAT, when zero-rating or reverse charge may apply, how making charges are treated, and what changed under the newer reverse charge system, so you know what to expect before you buy, sell, or trade gold in the country.
What Is the VAT Rate on Gold in UAE?
The UAE applies a standard 5% Value Added Tax (VAT), and gold is not automatically excluded from it. For most retail buyers purchasing gold jewellery in Dubai, Sharjah, or Abu Dhabi, VAT on gold in UAE is generally 5%. Different VAT treatments may apply to qualifying investment precious metals, exports and eligible B2B transactions.
The applicable gold tax in UAE treatment generally depends on the type of transaction:
- Retail gold jewellery: generally subject to 5% VAT
- Qualifying investment precious metals: zero-rated at 0%
- Qualifying B2B precious-goods transactions: may fall under the domestic reverse charge mechanism
- Qualifying exports: may be zero-rated when the relevant conditions are met.
Understanding these categories is important because the correct gold tax in UAE treatment depends on the type of transaction.
Is There VAT on Gold Bars in UAE?
Under the UAE VAT Executive Regulation, gold can qualify as an investment precious metal and be zero-rated at 0% VAT when it meets both of the following conditions:
- It has a purity of at least 99%
- It is in a form that is tradeable in global bullion markets
So, is there VAT on gold bars in UAE? A gold bar that meets both requirements can qualify for zero-rating. Gold products that do not meet the requirements for investment precious metals do not automatically qualify for the 0% rate. Their treatment under gold tax in UAE rules depends on the nature of the supply.
The Reverse Charge Mechanism for Gold: What Changed in 2025
The UAE’s domestic reverse charge mechanism previously applied to qualifying supplies of gold and diamonds under Cabinet Decision No. 25 of 2018.
From 26 February 2025, Cabinet Decision No. 127 of 2024 introduced an expanded framework covering a broader category of qualifying precious goods. The updated rules include certain precious metals, precious stones and jewellery, subject to the applicable conditions. The FTA has also issued Public Clarification VATP043 explaining how the updated reverse charge mechanism applies:
| Category | Covered under the 2025 reverse charge |
| Precious metals | Gold, silver, platinum, palladium |
| Precious stones | Natural and synthetic diamonds, pearls, rubies, sapphires, emeralds |
| Jewellery | Pieces made from the above, where the precious component’s value exceeds the rest |
For the domestic reverse charge mechanism to apply to a qualifying B2B transaction, the following conditions must be met:
- Both supplier and buyer are VAT-registered in the UAE
- The buyer intends to resell the goods or use them in manufacturing
- The buyer gives the supplier a written declaration to that effect before the supply
- The supplier verifies the buyer’s VAT registration and keeps that declaration on file
If any required condition is not met, the domestic reverse charge mechanism does not apply and the transaction follows its normal VAT treatment. Businesses should also remember that zero-rated supplies and supplies subject to the reverse charge mechanism can still be relevant when assessing VAT registration and reporting obligations.
This 2025 change is particularly important for gold traders, jewellers and other businesses dealing in qualifying precious goods, as older reverse charge guidance may no longer reflect the current rules.
VAT on Gold Making Charges
Under gold tax in UAE rules, gold jewellery purchases can include both the value of the gold and a making or workmanship charge. The VAT treatment of the making charge can depend on whether the gold and the related service form a single composite supply or are supplied separately.
Single composite supply: If a jeweller quotes one all-inclusive price covering both the gold and the making charge, with no separate breakdown, the whole supply can be treated as one composite supply. Where this qualifies under the reverse charge conditions above, the entire amount, gold plus making service, can be reverse-charged between registered businesses.
Separate supplies: If the gold price and making charge appear as separate line items, they may be treated as separate supplies. The gold portion may qualify for the reverse charge where the applicable conditions are met, while the separately supplied making service is generally subject to the standard 5% VAT rate.
For retail customers, gold jewellery is generally subject to the standard 5% VAT rate. The distinction between the gold and making service becomes particularly important for businesses determining the correct VAT treatment of their transactions.
VAT on Gold Jewellery for Retail Buyers
For retail buyers, the tax on gold in UAE generally includes 5% VAT on gold jewellery. This can apply to 24K, 22K, 21K and 18K jewellery because the zero-rating available for qualifying investment precious metals does not automatically apply to finished jewellery.
When Is Gold Zero-Rated or Subject to Reverse Charge in UAE?
The gold tax in UAE treatment can differ depending on the type of transaction. Qualifying investment precious metals and exports may be zero-rated, while eligible B2B transactions can fall under the domestic reverse charge mechanism.
- Investment precious metals: Qualifying gold with at least 99% purity that is in a form tradeable in global bullion markets can be zero-rated at 0%.
- Qualifying exports: Gold exported outside the UAE may qualify for zero-rating when the applicable export conditions and evidence requirements are met.
- Qualifying B2B precious-goods transactions: The domestic reverse charge mechanism may apply when the required conditions are satisfied, meaning the recipient accounts for VAT instead of the supplier charging it in the normal way.
Transactions that do not qualify for zero-rating or the domestic reverse charge mechanism follow their applicable VAT treatment. Most retail gold jewellery purchases are subject to the standard 5% VAT on gold in UAE.
Documents Required for Gold VAT Compliance
Applying zero-rating or the domestic reverse charge mechanism requires businesses to maintain appropriate supporting records. The documents needed depend on the transaction and the VAT treatment being applied. A typical documentation set includes:
| Document | What it establishes |
| Tax invoice | Full transaction details, including TRN, gold value, and VAT treatment |
| Purity certificate | Confirms the gold meets the 99%+ purity threshold |
| VAT registration proof (TRN) for both parties | Confirms both buyer and seller are VAT-registered |
| Buyer declaration | States the gold is intended for resale or manufacturing, not personal use |
| Sales contract | Sets out the gold, any making charges, and the agreed VAT treatment |
| Import/export documentation | Supports zero-rating claims where the gold enters or leaves the UAE |
Incomplete supporting records can make it difficult to substantiate the VAT treatment if a transaction is reviewed by the FTA
VAT Refund for Tourists Buying Gold in Dubai
Eligible tourists may be able to claim a refund of VAT paid on qualifying gold and jewellery purchases through the UAE’s Tax Refund for Tourists Scheme.
To qualify, tourists should:
- Buy eligible goods from a retailer registered in the Tourist Refund Scheme
- Spend at least AED 250 excluding VAT in an eligible tax-free transaction
- Keep the required purchase and travel records
- Validate the tax-free transaction within 90 days from the tax invoice date
- Present the purchased goods for inspection if requested
- Complete the required validation before leaving the UAE
The FTA currently states that 13% of the VAT amount requested plus AED 3.60 per tax-free transaction is deducted as a service fee.
This means eligible visitors may recover part of the VAT on gold in Dubai for qualifying purchases, provided both the traveller and transaction meet the scheme requirements.
Which Businesses Need to Follow Gold VAT Rules?
The gold tax in UAE is relevant to more than retail jewellery sales. Businesses that should understand the applicable VAT rules include:
- Gold and jewellery retailers issuing consumer invoices
- Wholesale traders and dealers in gold, diamonds, and other precious goods
- Refiners and manufacturers converting raw gold into finished products
- Importers and exporters of investment-grade metals
- Jewellery workshops billing making charges separately from gold value
For these businesses, correct VAT treatment, buyer declarations, tax invoices and supporting records form an important part of ongoing UAE gold VAT compliance.
Do Gold Traders Need to Register for VAT in UAE?
Gold traders, jewellers and other businesses dealing in precious goods may need to register for VAT when their taxable supplies and imports exceed the UAE’s mandatory VAT registration threshold of AED 375,000, subject to the applicable registration rules.
Voluntary VAT registration may be available from AED 187,500, subject to the applicable conditions.
Businesses subject to gold tax in UAE rules should not assume that zero-rated or reverse-charge transactions automatically remove their VAT obligations. The company’s activities, taxable supplies and applicable VAT rules should be reviewed when determining whether registration is required.
Common Mistakes to Avoid
- Assuming all gold bars are automatically VAT-free — confirm that the gold has at least 99% purity and is in a form tradeable in global bullion markets before treating it as zero-rated.
- Applying outdated reverse charge rules — update invoicing and documentation to reflect the current framework under Cabinet Decision No. 127 of 2024.
- Skipping the buyer’s written declaration — where a declaration is required for the domestic reverse charge mechanism, make sure it is obtained before applying the relevant VAT treatment.
- Missing the tourist refund requirements — eligible visitors should confirm the minimum transaction value, retailer participation and validation requirements before leaving the UAE.
- Incorrectly treating gold and making charges on invoices — determine whether the transaction involves a composite or separate supply and apply the appropriate VAT treatment.
Why Choose Taskmaster Gulf
Gold VAT in UAE compliance requires businesses to apply the correct treatment to retail sales, investment precious metals, making charges and qualifying B2B transactions. Taskmaster Gulf can support businesses with:
- VAT registration and ongoing compliance
- Guidance on the domestic reverse charge mechanism
- VAT treatment of gold and making charges
- Documentation and record-keeping requirements
- VAT filing support for gold traders, jewellers and manufacturers
Frequently Asked Questions
How Much Is VAT on Gold in UAE?
Most retail gold jewellery purchases are subject to the standard 5% VAT rate. Qualifying investment precious metals can be zero-rated, while eligible B2B transactions may fall under the domestic reverse charge mechanism.
Is there VAT on gold in Dubai?
Yes, VAT on gold in Dubai generally applies at 5% to retail gold jewellery. However, qualifying investment precious metals and certain business transactions can receive different VAT treatment.
Is there VAT on gold bars in UAE?
Qualifying investment gold can be zero-rated at 0% VAT if it has at least 99% purity and is in a form tradeable in global bullion markets. Gold products that do not meet these requirements do not automatically qualify for zero-rating.
What is the rate of 22K gold in UAE today with VAT?
There is no fixed daily price for 22K gold because gold rates change with the international market. For retail jewellery, 5% VAT generally applies to the taxable amount. Check the current 22K gold rate and the retailer’s invoice for the final price.
Is Dubai 100% tax-free?
No. Dubai is not completely tax-free. The UAE applies 5% VAT to most taxable goods and services, including most retail gold jewellery purchases. Other taxes, customs duties and government fees may also apply depending on the transaction.
Can I carry a 20-gram gold bar to India from Dubai?
Carrying gold from Dubai to India is subject to Indian customs and baggage rules, which are separate from UAE VAT requirements. Check the latest requirements, declaration rules and applicable customs duties with Indian customs before travelling.
Need Help With Gold VAT in the UAE?
Getting gold tax in UAE right means understanding when 5% VAT applies, when zero-rating may be available and whether the domestic reverse charge mechanism applies to a qualifying business transaction.
Taskmaster Gulf can assist gold traders, jewellers, manufacturers and other businesses with VAT registration, reverse charge requirements, documentation and ongoing UAE VAT compliance.
