To enhance VAT procedures for gold and diamond traders, the UAE Ministry of Finance (MoF) introduced new regulations. Under these updated rules, the ‘reverse charge mechanism’ will now apply to registered dealers of precious metals and stones. Consequently, VAT collection responsibility shifts from suppliers to buyers, who must calculate and report the tax directly to the government.
Furthermore, the updated regulations cover precious metals such as gold, silver, palladium, and platinum. Precious stones like diamonds, pearls, rubies, sapphires, and emeralds are also included. Additionally, jewelry made from these materials is covered if the value of metals or stones exceeds other components.
This expansion, outlined in Cabinet Decision No. (127) of 2024, highlights the government’s focus on supporting the sector. As a result, local VAT practices now align more closely with international standards, boosting the sector’s competitiveness. The revised guidelines aim to simplify compliance while reducing administrative burdens for suppliers.
Moreover, the Ministry aims to create a business-friendly environment through a robust regulatory framework. By doing so, the UAE strengthens its global position in the precious metals and gemstones trade. These updates not only reflect the government’s commitment to supporting this sector but also ensure its sustained growth.
In addition, the regulations demonstrate the Ministry’s forward-thinking approach to industry development. With these measures, the UAE remains a leading destination for precious metals and stones trading. This strategic focus ensures long-term prosperity for this vital sector within the nation’s dynamic economy.
By aligning local practices with global standards, the government supports business growth while ensuring regulatory excellence. The updates also reinforce trust in the UAE’s trading environment, encouraging international collaboration. Consequently, the updated VAT procedures enhance the country’s appeal to global investors and traders.
Through these efforts, the UAE solidifies its role as a hub for precious metals and stones. This commitment ensures a thriving trading industry that contributes significantly to the nation’s economic success. The MoF’s proactive approach underscores the importance of adapting to global trends while fostering local prosperity.
