Understanding VAT on Gold and Silver in the UAE
Investing in precious metals like gold and silver has long been a trusted method of wealth preservation. But in today’s regulatory environment, especially in a dynamic financial hub like the UAE, understanding the tax implications is just as crucial as tracking market trends. The VAT on gold in UAE has undergone significant developments, particularly with Cabinet Decision No. 127 of 2024, which took effect on February 25, 2025. Whether you're a bullion investor, jewelry retailer, or importer/exporter, knowing how UAE gold VAT rules apply to your transactions is essential.
In this guide, we break down everything from investment gold VAT UAE classifications to reverse charge mechanisms and documentation requirements. This is your complete, easy-to-understand reference for navigating VAT on silver UAE and gold in 2025.
VAT Basics in the UAE
Since its introduction in 2018, Value Added Tax (VAT) has applied to most goods and services in the UAE at a standard rate of 5%. However, not all products are treated equally under the VAT framework.
Here’s a quick breakdown of the VAT categories:
Standard-Rated: Most goods and services (including non-investment jewelry)
Zero-Rated: Certain exports, healthcare, education, and specific investment-grade precious metals
Exempt: Residential rentals, bare land, and some financial services
Understanding which category your gold or silver product falls into determines how VAT will impact your costs and margins.
Zero-Rating for Investment-Grade Gold & Silver
One of the most critical exemptions in UAE VAT legislation applies to investment-grade precious metals, particularly gold and silver.
To qualify for UAE zero rated gold VAT 2025, the product must meet all the following:
Purity of at least 99%
In a tradable form such as bars, ingots, or coins
Intended for investment purposes (not ornamental use)
The Federal Tax Authority UAE VAT pure gold guidelines emphasize that zero-rating only applies when investment intent is documented.
Table: VAT Treatment Comparison
If you're buying bullion for investment, proper documentation can make a substantial difference in your cost.
Reverse Charge Mechanism (RCM) – New for 2025
One of the most notable changes in 2025 is the implementation of the reverse charge mechanism for precious metals through Cabinet Decision No. 127 of 2024.
Under this model:
VAT-registered suppliers do not charge VAT on qualifying supplies to other VAT-registered buyers
The buyer self-accounts for VAT in their return
This applies to B2B transactions involving:
Gold
Silver
Platinum
Diamonds
Jewelry, if the value is predominantly from precious metal content
This B2B VAT reverse charge on precious metals UAE helps improve cash flow for businesses and avoids the upfront VAT burden during purchase.
Imports & Exports: VAT Implications
Imports
When importing gold or silver into the UAE:
VAT at 5% is generally due
If the importer is VAT registered, they may use the reverse charge to avoid paying VAT at customs
Correct classification (e.g., investment-grade vs. ornamental) is crucial for compliance
Exports
When exporting outside the GCC:
Investment-grade gold and silver may qualify for an export zero rating in gold UAE VAT
Valid customs documentation, invoices, and shipping records are required
Exports must occur within 90 days of the taxable supply date
Businesses involved in cross-border trade should ensure that proper procedures are followed to maintain zero-rating eligibility.
Documentation & Compliance Requirements
To benefit from zero-rated treatment, businesses must meet the documentation for zero rated gold UAE VAT rules:
Certificate of purity (at least 99%)
Written declaration from the buyer stating intent to use the metal for investment
VAT-compliant tax invoice detailing bullion and any making charges
KYC/AML documentation for cash transactions above AED 55,000
Failing to meet any one of these requirements can result in reclassification to the standard 5% VAT rate.
Implications for Investors & Businesses
For Individual Investors:
Buying 99% purity investment grade gold UAE VAT is zero-rated, which means no VAT cost if documentation is correct.
Buying jewelry for personal use still incurs 5% VAT, especially on making charges.
For Retailers & Wholesalers:
Eligible to claim input tax recovery bullion UAE VAT, especially for business-use purchases
Must maintain accurate records to justify tax positions
Can benefit from reverse charge mechanism on B2B gold/silver supply, reducing working capital strain
Frequently Asked Questions (FAQs)
Q1: Is VAT charged on 24K gold bars in Dubai?
A: No, if the bars meet 99% purity and are sold as investment products, they are zero-rated, provided all documentation is complete.
Q2: Is VAT applied to silver bullion in the UAE?
A: Yes, but only if the silver is investment-grade (≥ 99%) and in tradable form. Jewelry or mixed purity items attract 5% VAT.
Q3: What is the reverse charge mechanism?
A: It allows VAT-registered buyers to account for VAT instead of the supplier. Applies to B2B precious metal transactions post-Feb 25, 2025.
Q4: Do making charges attract VAT?
A: Yes, making charges VAT on jewellery UAE is subject to 5% VAT, even if the gold itself is zero-rated.
Q5: How can I prove that my gold purchase is for investment?
A: By providing a signed declaration, a certificate of purity, and ensuring the invoice reflects zero-rating conditions.
How Ashoka Global Helps
At Ashoka Global, we specialize in simplifying precious metal investments by ensuring compliance with UAE gold VAT rules. Our platform helps you:
Track bullion purity and documentation
Generate compliant invoices and declarations
Offer insured delivery and third-party vaulting
Support with KYC and AML compliance
We work closely with both retail and institutional investors to ensure they take full advantage of investment gold VAT UAE benefits.
Explore our bullion services | Contact our compliance team
Conclusion
Understanding how VAT on gold in UAE and VAT on silver UAE is applied in 2025 is essential for anyone engaged in the precious metals market. The distinction between investment-grade and jewelry, along with new rules like the reverse charge mechanism precious metals UAE, requires careful attention to compliance and documentation.
If you're unsure about your obligations or want to ensure your investments remain VAT-efficient, Ashoka Global is here to help. Contact our team for expert guidance on sourcing, documentation, and secure bullion handling in the UAE.