VAT on Gold and Silver in the UAE: What Buyers Should Know

The UAE introduced VAT in 2018 at a standard rate of 5%, and precious metals have specific treatment worth understanding before you buy.

Investment-grade precious metals — generally gold, silver and platinum of 99% purity or higher, in a form tradeable on a bullion market — are zero-rated for VAT under UAE law. In practice, this covers most bars and coins sold for investment purposes, such as 999.9 gold bars.

Gold and silver jewellery, on the other hand, typically does not qualify for the investment-grade exemption because it falls below the required purity threshold once alloyed with other metals, or because it's a finished consumer good rather than a tradeable bullion form. Jewellery purchases are generally subject to standard 5% VAT.

There is also a reverse-charge mechanism that applies to certain B2B transactions between VAT-registered dealers in the gold and diamond sector, shifting the VAT reporting obligation to the buyer rather than the seller. This mostly affects trade transactions rather than retail purchases, but it's part of why trade pricing and documentation can look different from a retail receipt. For qualifying reverse-charge transactions, our invoices state clearly that VAT is to be accounted for by the registered buyer, in line with UAE Cabinet Decision No. 127 of 2024.

This is general information, not tax advice — UAE VAT law includes specific conditions and documentation requirements, and treatment can vary by product form and transaction type. This article is provided for general informational purposes only and does not constitute tax or legal advice. Please consult a licensed UAE tax advisor for guidance specific to your circumstances. If you have questions about how VAT applies to a specific purchase, our team can walk you through the invoice at the time of sale.