The UAE has announced a revised value-added tax (VAT) regulation for businesses trading in precious metals and stones, effective immediately.
The Ministry of Finance (MoF) has expanded its ‘reverse charge mechanism’ to include transactions involving gold, silver, palladium, platinum, natural and manufactured diamonds, pearls, rubies, sapphires, and emeralds. Jewelry made from these materials is also covered, provided the value of the precious components surpasses other elements.
Under the updated rule, buyers will now calculate and report VAT directly to the government instead of the supplier. This change, introduced through Cabinet Decision No. (127) of 2024,is aimed at supporting and enhancing the precious metals and stones trading sector in the country.
The MoF emphasized that this move aligns with the UAE’s efforts to foster a robust business environment, promote sector growth, and maintain global best practices in regulatory frameworks.
Source: proudpinoymedia