VAT on Gold in UAE: All the Lowdown on Rates, Exemptions & Rules - 2026 Update

VAT on Gold in the UAE

The UAE is one of the world's go-to places for trading gold, especially in Dubai - the City of Gold - which has a reputation all over the world. The UAE's gold souks are top-notch, and demand from shoppers is high, thanks to the country's free-trade environment and a reliable global supply chain. As a major player in the global gold market, Dubai & The UAE play a critical role, serving as a key exporter and international trading hub for gold. In 2025, the UAE did a huge trade in gold - exporting a whopping 47 BILLION in value, that's a massive 47 BILLION worth of beautiful, top quality gold in all its forms - investment gold, gold jewellery, and more. With this gold trade making the UAE's gold industry its second-largest non-oil export sector after oil, the UAE really does have a lot riding on the gold market and ensures the purity of the gold is always up to scratch through its strict hallmarking regulations.

VAT on gold in the UAE is governed by the Federal Decree Law No. 8 of 2017, the law that sets the rules for introducing Value Added Tax to the country. Now gold is a pretty big deal for the UAE's economy, so it's essential for anyone bringing gold into the country - whether you're an importer, a supplier, a wholesaler, a retailer, a jeweller or even just a private investor to understand how VAT on gold in the UAE works. The overall VAT framework for the gold sector is made up of a bunch of different moving parts, including the standard VAT rate, what's zero-rated, what's exempt and of course the reverse charge mechanism for when wholesalers are involved. In the UAE, how VAT gets applied to a gold purchase usually depends on the type of gold you're buying and who you are, the buyer. Working out how to deal with VAT on gold in the UAE can be a minefield - you're talking tax law, compliance rules, and getting to grips with international trade.

This in-depth guide is here to break down everything you need to know about VAT gold in Dubai - we'll be covering updates up to 2026, the rules around exemptions, supply chain stuff, what businesses need to do, invoicing and just how the UAE keeps its gold market free from the kinds of scams and tax avoidance that can otherwise go on.

1. Understanding VAT on Gold in the UAE - The Basics

(1). When Did VAT First Hit the UAE?

VAT landed on the scene on January 1st 2018, and it was starting out at a standard rate of 5%. The early days were like any other retailer, with gold transactions being taxed the same as all other goods. But when the UAE government took a closer look at the gold trading scene, they realised that this market was a bit more complicated than your average retail industry. So, they decided to step in and introduce special rules to make life a bit easier for businesses in the sector. This was done with UAE Cabinet Decision No. 25 of 2018, making it much easier for businesses to get to grips with the reverse charge mechanism for VAT on gold. Over time, there have been plenty of new VAT regulations added, just to keep things nice and simple for gold trading.

2. VAT on Gold - How It Gets Categorised

Gold gets categorised in three main groups for tax purposes:

1. Gold for Investment: This is really high-purity gold, in the form of a bar, ingot or coin, and in a purity level of 99%+, which is usually exempt from VAT.

2. Gold Jewellery: This is gold that's been worked into some sort of fancy jewellery or ornament, and it will attract the standard VAT rate.

3. Other Gold Products: This is a catch-all category for any type of gold that doesn't fit into the above two - like gold-plated items or industrial gold - which will also be subject to VAT.

Remember, the VAT treatment for jewellery splits the value of the gold from the making charges, so the value of the gold itself and the extra charges for crafting do get taxed differently. There's also a few important exceptions and special cases when it comes to gold transactions, like investment-grade gold or certain regulatory cases, and these can include things like VAT exemptions and even the reverse charge mechanism.

1. Investing in Gold

• Typically, 99% purity or better - but check for the exact figure

• Traded around the world as a commodity

• Usually, zero-rated or exempt from VAT - check the details

A purity certificate is a must to confirm the gold meets at least 99% purity standards and to qualify for that VAT exemption.

2. Gold Used in Manufacturing

• Raw gold is used to make jewellery or bullion, which can be taxed in a different way

• The special tax rule (reverse charge) applies when the gold comes from a registered supplier, and you only pay the VAT when you declare the goods have been bought. If you're a buyer, you'll need to give the supplier confirmation that you are VAT registered and responsible for any tax. And if you're a supplier, you'll need the confirmation from the buyer - so you can use the reverse charge mechanism.

3. Finished Gold Jewellery

• Gold that's been made into something you can wear - like a ring or necklace - is taxed at the standard VAT rate.

It makes a difference whether the gold is sold on its own or is part of something else, like a necklace with a gemstone on it. If the supplier breaks it down into separate bits and charges for the gold content and the work they did separately, then each bit gets taxed separately. The key is to make sure the supplier sends you separate tax invoices for each bit - so you can work out how much VAT to pay.

3. VAT Rates on Gold in UAE - Updated for 2026

3.1 How VAT Affects Investment-Grade Gold

Investment-grade gold – often simply called 'fine gold' – is either zero-rated or exempt depending on its purity and form. Dubai's a big draw for gold shoppers, especially tourists, because of its attractive VAT refund scheme that lets visitors get their VAT back on gold jewellery and bullion purchases.

To qualify for zero-rating:\

• the gold must be at least 99% pure\

• it must be tradable on international bullion markets\

• it can't be heavily processed or decorated

What counts towards zero-rating:

You can zero-rate sales of investment gold

✔, avoid the standard VAT rate if it's certified

✔, and claim back any input VAT you paid (if you qualify)

3.2 What to know about VAT on Gold Used in Making Things

Gold that's being used to make jewellery isn't for investment - that's why it doesn't get the same rules as investment-grade gold. This kind of gold is:

• less than 99% pure\

• getting used in workshops and factories\

• subject to a special system called the reverse charge, which changes who pays the VAT

The reverse charge makes businesses pay less tax by making the buyer account for VAT in their own returns. This is a big help for businesses because it lets them save cash and deal with VAT in their own returns rather than having to pay their supplier's VAT up front. But this rule only applies when both the buyer and seller are registered for VAT in the UAE and are dealing with goods - not services. And you need to make sure you know when you're buying a service and when you're buying a product, since reverse charge doesn't apply to services.

3.3 VAT on the Gold You Buy as Jewellery

Jewellery is a finished product, so here are some examples\

• Rings

• Braclets

• Necklaces

• Wedding sets

• Designer gold items

Things you need to keep in case you get audited:

• a tax invoice that shows all the important details - like the invoice number, date, who bought and sold it, what it is, how much VAT is on it, and the total price.\

• a bank statement that shows you paid for it and supports you in case you get audited.

VAT on jewellery:

• It's taxed at 5% like everything else\

• VAT gets added to the total price, including the cost of making it

This is the bit that most tourists and retail buyers who come to Dubai worry about when they're buying gold in Dubai and want to know about VAT.

4. Zero-Rated vs Standard-Rated Gold Transactions

4.1 Zero-Rated Gold - When Does It Apply

Zero rating typically kicks in if:

• The gold you're buying is of the right investment quality

• The supplier has the right documentation to meet the FTA's requirements

• You're buying it for investment purposes, and not for some other use

The UAE's gold sector is a big deal in the international trade scene - the VAT rules are actually designed with gold exports and imports in mind to make it easier for this industry to thrive. And because of these VAT exemptions, the UAE is in a great position to be a major hub for trading in precious metals.

But Zero-Rating Doesn't Apply To...

• Gold used in jewellery or ornaments

• Luxury items with gold

• Gold with some decorative work on it

• Watches or accessories with gold plating

4.2 Standard Rated Gold - And When You're Charged 5% VAT

The standard VAT rate of 5% is what you'll be hit with in these cases:\

• Gold jewellery, for all its glitz and glamour

• Gold bars that aren't pure enough

• Luxury items with gold plating

• Gold coins that don't meet the right purity requirements\

• Any making or design charges in jewellery stores that you're paying for - the 5% VAT rate will include both the value of the gold and those charges\

• Gold imports into the UAE are usually subject to VAT, but if you're buying investment-grade gold you might still be able to get it exempt from VAT under the right circumstances

5. VAT on Gold in Dubai - A Tourist's Concerns

International buyers are often curious about VAT on gold purchases in Dubai, and that includes a lot of tourists from the United States, Europe and Asia. In the UAE, though, it's worth noting that the VAT on making charges gets charged separately from the value of the gold, so to speak. Which basically means that only VAT gets slapped on the making charges, while the gold itself could be treated differently and subject to its own VAT rules depending on the transaction in question.

The Lowdown:

• Visitors like you will have to pay a 5% VAT on any jewellery purchases.

• If you buy gold jewellery from some places, you can get a VAT refund when you leave - but only if you bought it from verified retailers.

• This refund business typically doesn't cover the making charges.

• You can get some of that VAT back on gold jewellery as part of the Tourist Refund Scheme, as long as you bought it from a participating store, it cost over AED 250 and you're not from the UAE. UAE residents or expats, on the other hand, have to pay the VAT themselves.

It's no surprise that Dubai's VAT refund system is so fast - it's encouraging a lot of the gold tourism business.

6. Reverse Charge Mechanism for Gold Trading - 2026 Update

The Reverse Charge Mechanism is a vital part of the UAE gold sector. Here's how it works: basically, when you're buying scrap gold, you don't pay VAT upfront - that gets declared and paid by the buyer themselves in their tax return, rather than the seller having to pay it first. This approach to VAT can really affect cash flow and tax compliance for businesses that are VAT-registered.

The Reason It's Necessary:

• Stops all sorts of dodgy invoicing\

• Helps out with tracking down people who don't pay their VAT

• Makes sure everything is transparent - no hidden deals

• Relieves some of the VAT burden from wholesalers

The Reverse Charge Mechanism basically means that the buyer is the one responsible for VAT, not the seller. That's mainly the case with:

• The gold that gets used to make new stuff\

• Wholesale trading between all the different dealers\

• Supplies coming in from importers and going to refiners

It all helps to make sure everyone is following the rules and not taking any big risks.

7. What Documentation Do You Need to Stay Compliant with Gold VAT in the UAE?

Businesses have to keep track of a bunch of stuff, including:

• Detailed VAT invoices that give all the basic info

• Evidence that shows the gold is the right purity - and that's not the only thing you need from suppliers

• Declarations from their suppliers to show they're a reliable business to deal with

• VAT returns and transaction logs - that's a big job, but someone's got to do it

• Records of reverse charge transactions to avoid any confusion

• Statements from authorised refineries - if you're going to work with them, you need proof of their credibility

• Stock records that meet FTA standards - or your business could be in trouble

• Special documentation for all imports and exports - that's a lot of paperwork

• And don't forget to get the TRN numbers of both the buyer and seller on file - that's a must for B2B exemptions. And for imports/exports, you need to keep records of the value and any duties paid on gold brought into the UAE - or prove that it's left the UAE

Businesses selling gold online have got to follow e-commerce rules too, so all digital sales and purchases are properly documented and reported.

To get VAT exemptions on gold purchases in the UAE, you need to keep super thorough records of all transactions, including:

• Detailed VAT invoices

• Proof of gold purity

• Supplier declarations

• VAT returns and transaction logs

• Evidence of reverse charge transactions

• Statements from authorised refineries

• FTA-compliant stock records

• Custom documentation for imports and exports

• Your tax invoices need to have all the important details on them - like the TRN, gold value and VAT notes - or you're way off the mark.

And by the way, if you don't keep all this documentation sorted, your business will likely face some hefty fines.

8. VAT Exemptions on Gold in the UAE

Gold is exempt only under two conditions:-

• It has to be pure investment gold that meets the criteria for gold that's purely for investment\

• It has to adhere to international bullion standards\

• It has got to be sold as an investment or a financial product

But if your gold is being sold to make something - like for use in manufacturing or turned into a piece of jewellery - then those sales are not exempt from VAT.

And as you might expect, companies trading gold will have to deal with tax inspectors who will be on the lookout to make sure they are following all tax rules and not just those for gold and VAT.

9. Import & Export VAT Rules for Gold

The UAE is a real powerhouse in terms of exporting goods. One of its top exports is gold, to the tune of around 47 billion UAE dirham (that's 47 billion worth) - making the gold trade the second biggest non-oil export in the country

Exporting Gold and VAT

✔ Exporting gold to places outside of the UAE is taxed at a zero rate, but you will need the right paperwork for customs

✔ You will need to have all the necessary documentation in order

Importing Gold and VAT

✔ If you are importing gold for investment, then you can reverse charge the VAT, or at least that is if your imports meet the right criteria

✔ If you are importing gold to sell as a piece of jewellery, then VAT will be charged at the standard VAT rate

10. Gold Prices and VAT in the UAE

Lots of people search for the current gold price in the UAE before making a purchase.

Does VAT affect Gold Prices?

Interestingly, VAT does not impact things like :-

• The international price of gold\

• The spot price of gold\

• Fluctuations in the bullion market

So what does this mean for you? Well - the price of gold is only really affected by one thing in the UAE: VAT on the sale of gold jewellery.

11. VAT and Those Confusing Gold Making Charges

This is a bit of a minefield - a lot of people get it wrong.

Making charges

• Are technically a service charge

• Always get taxed at the standard VAT rate of 5%

• Can't be zero-rated or exempt

Even if the gold you're buying is pure investment-grade, the making charge is still going to be taxable.

12. VAT on Scrap Gold

When you buy scrap gold to refine

✔ It might get caught up in the **reverse charge mechanism - so you need to watch out

✔ You'll have to keep track of the VAT and put it in your return yourself

✔ Meanwhile, your suppliers won't be charging you output VAT

Getting the paperwork right is crucial here.

13. VAT for Online Gold Sellers

If you run an online store selling gold:

✔ VAT works a bit differently depending on what sort of gold you're selling

✔ Gold jewellery is taxed at 5%

✔ Investment gold is zero-rated

✔ And if you're doing wholesale B2B, the reverse charge comes into play

Compliance can be tricky - especially if you're doing:

• Online bullion sales

• Selling jewellery online

• or running a global gold resale platform

14. VAT Audits for Gold Companies

Gold businesses are regarded as high-risk, so they're often audited to make sure you're playing by the rules

Audits will check on:

• Your inventory levels

• Your VAT invoices

• The purity of the gold you're selling

• What your suppliers are saying about the gold they're supplying you

• and all your import and export documents too.

15. Summary of VAT Gold UAE Rules (2026)

The UAE gold sector is one of the worlds most important markets - Dubai's reputation as the ultimate destination for buying and selling bullion and jewellery is well-deserved. Getting to grips with VAT gold in the UAE - that is to say, understanding the standard VAT rate, any exemptions, the documentation involved and the reverse charge mechanism - is essential for retailers, wholesalers, manufacturers, investors and exporters. The gold, diamond and precious metals sector is a vital part of the UAE's overall economy.

As the UAE continues to strengthen its regulatory framework, businesses need to stay fully compliant with the 2026 VAT guidelines - avoiding penalties along the way while maximizing tax efficiency.

How Can Flyingcolour Tax & Consultant Help Your Business?

At Flyingcolour Tax and Consultant, we help gold sector businesses with:

• VAT registration and making sure they stay on top of their compliance

• Applying the reverse charge mechanism rules correctly - no nasty surprises!

• Working out the right VAT treatment for investment gold - we don't leave any stones unturned

• VAT advice on importing and exporting gold

• Preparing for FTA audits - we leave no stone unturned to ensure your business is ready

• Managing your gold industry accounting & documentation - it's hard enough without trying to figure out tax too

• Evaluating zero-rating and exemptions - we give you all the options

• Filing your VAT returns and helping with tax planning - we keep it simple

Our tax experts will make sure your gold business has got every rule covered - reducing the risk of non-compliance and maximising your tax efficiency in one of the UAE's most heavily regulated sectors.

FAQ

1. Do tourists in Dubai get taxed on the gold they buy?

Yes, gold jewellery does get taxed at 5% - but you can claim your VAT back at the airport if you've got the paperwork.

2. Does Dubai charge VAT on gold bars?

If the gold bar is super pure - 99% or more - then it's zero-rated. However, if it's just a decorated bullion or jewellery, then it's 5%.

3. How does the reverse charge mechanism work with gold in the UAE?

Well, in a nutshell, it transfers the VAT liability from the seller to the buyer for wholesale and manufacturing-grade gold deals.

4. Is VAT included in the gold rate in the UAE?

No, the gold rate in the UAE is purely a reflection of the global market prices - VAT only comes into play when you buy it from a retail store.

5. Can companies export gold from Dubai without paying VAT?

Yes, but only if the gold is going outside the UAE and you have the proper customs documentation in place.

To learn more about VAT on Gold in UAE: All the Lowdown on Rates, Exemptions & Rules - 2026 Update, book a free consultation with one of the Flyingcolour team advisors.

Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.