VAT on Gold in Dubai | Everything Traders and Buyers Must Know

VAT on Gold in Dubai is an important factor for buyers, investors & traders etc. Understanding it ensures accurate pricing & potential tax perks when purchasing or trading gold in Dubai.

This guide explains how VAT applies to gold and precious metals in Dubai and the wider UAE. You will learn which transactions are taxable, which can be zero-rated, how investment gold is treated differently, documentation requirements, and how businesses should comply with VAT reporting. By the end, you will understand all aspects of VAT on gold trading, refining and import and export.

1. Introduction | Why VAT on Gold in Dubai Matters More Than Ever

The UAE introduced Value Added Tax at a standard rate of 5 percent. VAT applies to most goods and services unless they qualify for zero rating or exemption under specific conditions. Businesses involved in gold trading, refining, retail, or investment must determine the correct VAT treatment for each transaction.

VAT on Gold in Dubai is important for all the shoppers, investors & businesses. Dubai is one of the world’s top gold markets & trade here is growing fast. Knowing about the VAT rules can save a lot of money and prevent any sort of mistakes.

Whether you are a tourist, resident or business, having an understanding of VAT on Gold in Dubai helps you know how much you will pay and what rules will apply.

2. What Is the Current VAT Rate on Gold in Dubai?

In Dubai, most gold jewelry and decorative pieces are subject to a 5 % VAT, which applies across retail stores and gold souks. This means that whether you’re buying necklaces, bracelets or rings, the tax is included in the price. However, pure investment-grade gold, defined as 99 % or higher & usually in bars or coins it can qualify for 0 % VAT under specific conditions.

So, is gold VAT-free in Dubai? The answer is yes, but only for certified investment-grade gold that meets regulatory criteria. Any lower-purity gold or standard jewellery items will always carry the standard 5 % VAT. This makes it important for buyers to check purity before purchasing.VAT on Gold in Dubai depends on the purity, type & who is buying it.

3. Zero-Rated vs Standard-Rated: Understanding How VAT on Gold in Dubai Really Works

This is how VAT on Gold in Dubai works in practice

4. How Much VAT Do Tourists Pay on Gold in Dubai? Can It Be Refunded?

Tourists buying gold in Dubai should be aware that most purchases are subject to a 5 % VAT, especially when it comes to jewellery or gold items that are not classified as investment-grade. This means that when you pick up necklaces, bracelets or any decorative pieces from souks or malls, the tax is already included in the price.

However, many stores participate in tourist refund schemes, which allow visitors to claim a partial VAT refund when leaving Dubai. While the refund does not cover the entire 5 %, it can still provide a meaningful reduction in overall cost. Tourists need to keep all receipts and also complete the required refund forms at the airport to ensure an easy process.

Residents on the other hand, do not qualify for VAT refunds unless they are purchasing zero-rated investment gold. Understanding these rules helps buyers plan purchases, avoid any surprises & make the most of VAT on Gold in Dubai.

5. How VAT on Gold in Dubai Affects Retailers, Wholesalers & Investors

• Retailers & Wholesalers Transparency: Businesses must clearly display VAT on Gold in Dubai on invoices. Accurate VAT reporting ensures transparency & builds customer trust. Now this keeps transactions in line with regulatory requirements.
  
• B2B Transactions & Reverse Charge: In B2B trades, suppliers often do not charge VAT directly. Buyers account for it themselves under the reverse charge mechanism, which maintains compliance while simplifying VAT handling between businesses.
  
• Accounting & Compliance: Precise accounting is essential to separate gold cost, making charges & VAT. Since 2025, stricter rules require detailed documentation for audits, which ensures businesses remain fully aligned with the UAE tax regulations.
  
• Investors & Zero-Rated Gold: Investment-grade gold might qualify for zero-rated VAT when traded correctly. Investors must maintain purity certificates and other trade records & having a knowledge of VAT on Gold in Dubai affects profitability and cross-border transactions.

6. How to Avoid Overpaying VAT on Gold in Dubai (Legally)

• Buy from Registered Dealers: Always purchase gold from VAT-registered dealers in Dubai. This ensures proper invoicing, legal compliance & that the VAT applied on gold purchases is accurate and traceable for any future records
  
• Choose Investment-Grade Gold: One must focus on 99 %+ pure gold in bars or coins. Investment-grade gold may qualify for zero-rated VAT, which makes it a smart choice for buyers looking to reduce costs legally and easily
  
• Use B2B Transactions & Documentation: A great tip is to structure purchases as B2B transactions when possible and keep all purity certificates and export documents. Proper records are essential to comply with UAE VAT rules
  
• Check Making Charges & Regulations: Also request a clear breakdown of making or design charges, cause only these are taxable. One must stay updated with the latest rules to legally minimize VAT on Gold in Dubai.

7. Investment Grade Gold and Bullion

• Investment grade gold refers to high-purity gold that meets defined fineness standards.
  
• It is commonly traded in recognised forms such as bars, ingots, and bullion.
  
• This category usually applies to gold used for investment rather than jewellery or decorative purposes.
  
• Qualifying investment grade gold may receive special VAT treatment under UAE regulations.
  
• To qualify, businesses must maintain assay or purity certificates.
  
• Invoices must clearly describe the gold type, weight, and purity.
  
• Proper documentation is required to support any zero-rating or special VAT treatment.
  
• If gold does not meet investment grade criteria, it is normally treated as standard rated.

8. Business to Business Supplies (Reverse Charge Mechanism)

• Applies to certain gold transactions between VAT registered businesses in the UAE.
  
• The supplier does not charge VAT on the invoice.
  
• The buyer accounts for both output VAT and input VAT in their VAT return.
  
• Both supplier and buyer must be VAT registered.
  
• The gold supplied must meet qualifying criteria.
  
• Invoices must state that reverse charge applies.
  
• If conditions are not met, VAT is charged at 5 per cent.
  
• Strong documentation must be retained for audit purposes.

9. Documentation and Compliance Requirements

Businesses dealing in gold must:

– Maintain tax invoices
– Keep assay and purity certificates
– Record customs documentation
– File accurate VAT returns
– Retain records for audit purposes

The Federal Tax Authority may request documentation during audits, and failure to comply can lead to penalties.

10. How Businesses Can Register for VAT on Gold Trade in Dubai

• Obtain Trade License: Any business selling gold in Dubai must first secure a trade license for gold trading. This is the foundation for legal operations and compliance with local regulations.
  
• Register for VAT: Businesses with annual sales exceeding AED 375,000 must register for VAT to obtain a Tax Registration Number (TRN) to meet UAE Federal Tax Authority requirements.
  
• Implement Accounting Systems: Maintain detailed accounting that separates gold content, making charges & VAT. Accurate records ensure compliance and easy audits, mostly for investment-grade gold transactions.
  
• Apply Reverse Charge & Manage Costs: Use the reverse charge mechanism for B2B trades of investment-grade gold. Also, the compliance costs typically range from AED 5,000–20,000 annually which depends on business size and complexity.

11. Comparison | VAT on Gold in Dubai vs Saudi vs UK vs India

Dubai’s VAT remains low, making it attractive for buyers and traders.

12. FAQs

Is VAT on gold in Dubai refundable?
Yes, for tourists. Refunds are partial and require proper documentation.

Do I pay VAT on 24k gold in Dubai?
Investment-grade gold (99 %+) in bars or coins may be 0-rated. Jewelry always has 5 % VAT.

What is the VAT rate on gold jewellery in Dubai malls?
Standard 5 % VAT applies.

Is gold VAT-free in Dubai for all buyers?
No. Only certain investment-grade gold transactions are 0-rated.

When did VAT rules change for gold in Dubai?
The 2025 Cabinet Decision updated rules and reverse charge for B2B trades.

13. Conclusion

VAT on Gold in Dubai varies on the type of gold, its purity &  the nature of the transaction. Jewellery and decorative pieces are generally taxed at 5 %, while pure investment-grade gold, such as bars or coins with 99 % or higher purity, may qualify for zero-rated VAT under specific conditions. This makes Dubai one of the most attractive markets globally for gold trading and investment. For businesses looking to enter the gold market, understanding VAT rules is crucial to ensure legal compliance and optimize profitability.

Expert guidance can simplify the process of business setup, VAT registration & ongoing compliance. Arnifi supports gold traders with complete solutions, which include business setup, VAT registration, visa services, accounting & bookkeeping & post-setup compliance we help investors and businesses operate easily while obeying to all UAE regulations.