Gold VAT in the UAE
Gold in the UAE is subject to the standard 5% VAT, administered by the Federal Tax Authority (FTA) under the VAT framework in force since 2018. How it applies depends on what you buy.
Jewellery: 5% VAT
Gold jewellery bought for personal use is taxed at 5% on the full invoice, including the making charge, not just the metal. A retailer’s quote should show the metal value, making charge and VAT separately.
Investment gold: zero-rated
Investment-grade gold of 99% purity or higher in tradable form (bars and coins), correctly documented by the supplier, is zero-rated for VAT. This is why 24K bullion is priced closer to the metal value than jewellery.
Reverse-charge mechanism (B2B)
For business-to-business gold transactions, the reverse-charge mechanism (RCM) shifts the VAT reporting to the registered buyer rather than the supplier. This mainly affects traders, not retail shoppers.
Tourists
Visitors can reclaim VAT paid on qualifying jewellery purchases through the UAE Tax Refund for Tourists Scheme before leaving. See our tourist VAT refund guide.
Who charges VAT and who does not
The Federal Tax Authority runs VAT in the UAE at a standard 5% rate. A jeweller must register once taxable supplies pass the mandatory threshold. Below that, a small shop may not charge VAT at all.
That is why two shops can quote differently on the same weight. Always ask for a tax invoice showing the supplier’s Tax Registration Number. Without a TRN on the document, no VAT should be added.
Zero rated investment gold
Investment grade precious metal is zero rated rather than exempt. To qualify, gold must be at least 99% pure and tradeable on global bullion markets. That covers most 24K bars and recognised bullion coins.
Jewellery does not qualify, even at 24K, because it is made for wear rather than trading. So a 999 bar can be zero rated while a 999 bangle is not. Check the treatment in writing before you pay.
The reverse charge for registered buyers
The UAE applies a reverse charge mechanism on gold between VAT registered businesses. The buyer accounts for the tax instead of the seller collecting it. This keeps cash flow workable in a high value trade.
It applies only where both parties are registered and the buyer declares intent to resell or refine. Retail shoppers never use it. Our VAT refund calculator covers the consumer side instead.
What VAT is actually charged on
VAT applies to the whole invoice, not just the metal. Making charges, stone value and any design fee are all inside the taxable amount. That is why a heavily worked piece carries more tax than a plain chain of equal weight.
On a 10 gram 22K purchase, the tax follows metal plus labour combined. Model it with the making charge calculator. The gold calculator then shows the full till figure.
Buying back and trading in
Selling your own gold to a shop is not a taxable supply by you. You are a private individual, not a registered business. The shop handles its own VAT position on the onward sale.
Some jewellers apply a profit margin scheme on second hand goods. That taxes their margin rather than the full resale price. See the used gold price page for how buyback is valued.
FAQ
Is there VAT on gold in Dubai?
Yes, 5% on jewellery. Investment-grade bars and coins of 99%+ purity can be zero-rated.
Do I pay VAT when I sell my gold?
No, VAT applies to purchases, not to selling your own gold.
Verify current rules with the UAE Federal Tax Authority (tax.gov.ae) before relying on them for a transaction.
Work out the VAT inside your receipt
UAE prices already include 5% VAT, so you divide rather than add. The calculator below pulls the tax out of any total. It also estimates a tourist refund.
| Price before VAT | — |
| VAT inside the price (5%) | — |
| Operator cut and fee | — |
| Estimated refund | — |
An estimate only. The refund operator sets its own service cut and per-tag fee, and both can change. You must be an eligible visitor, request a tax-free tag in store, and validate it before leaving the country.
VAT on different gold products
- Jewellery carries 5% VAT on the full price, metal plus making charge.
- Investment grade bullion can qualify for zero rating depending on purity and seller.
- Second-hand gold may fall under special margin rules for registered dealers.
Always ask for a proper tax invoice. It should show the supplier tax registration number. Keep it for refunds, resale and customs.
If you are visiting
Visitors can reclaim VAT on eligible purchases taken out of the country. Request a tax free tag in store at the time of purchase. Our tourist VAT refund guide covers the airport steps.