VAT on Gold in Dubai: Complete Guide for Buyers & Investors

UAE VAT on Gold: The Key Distinction

The UAE Federal Tax Authority (FTA) applies VAT differently to gold depending on its form:

• Investment gold (bars, coins with 99%+ purity): VAT-exempt (0%)
• Gold jewellery (any karat, including 24K): Subject to 5% VAT

This distinction — based on use (investment vs personal adornment) rather than purity — is critical for buyers. A 24K gold bar attracts no VAT; a 24K gold necklace does.

Investment Gold: What Qualifies for VAT Exemption?

Under UAE VAT law, investment gold qualifies for zero-rating if it meets all three conditions:

1. Purity of 99% or higher (i.e., 24K / 999 fineness or comparable)
2. Tradeable on a gold market (bars and coins meeting international trading standards)
3. In a form that is primarily used for investment, not adornment

Standard PAMP Suisse bars, Emirates Gold bars, Kaloti bars, and internationally recognised bullion coins (UAE Gold Dirham, Krugerrand, American Eagle, Britannia) typically qualify.

Gold Jewellery: The 5% VAT

All gold jewellery — regardless of karat — is subject to 5% VAT in Dubai. This applies to:

• Necklaces, bangles, earrings, rings, bracelets
• Custom-made pieces
• Gold chains intended for personal wear
• Antique jewellery

The 5% VAT is calculated on the total invoice value including making charges. On a AED 5,000 jewellery purchase, VAT adds AED 250.

Tourist VAT Refund Scheme

If you are a tourist (non-UAE resident) buying gold jewellery, you can claim a refund of most of the 5% VAT through the UAE's tourist refund scheme:

1. Buy from a participating retailer (most mall jewellers; some Gold Souk shops) — look for the "Tax Free" sticker
2. Spend at least AED 250 per transaction
3. Ask for a tax refund form at point of purchase
4. At Dubai Airport, present your passport, goods, and tax refund forms to the refund desk before check-in
5. You will receive 85% of the 5% VAT paid — the remaining 15% covers scheme administration

Refunds are processed by Planet or Global Blue (the UAE's appointed refund operators) and can be paid in cash (up to AED 10,000) or credited to your card.

B2B Gold Transactions and the Reverse Charge

For gold trading businesses in Dubai (jewellers buying gold from other jewellers, refineries, or dealers), the UAE introduced a Reverse Charge Mechanism in 2018 specifically to address gold trade. Under this mechanism:

• Gold supplied between VAT-registered businesses for resale or manufacturing is handled under reverse charge
• The buyer, not the seller, accounts for the VAT — preventing cash flow issues in high-volume gold trading
• This system keeps Dubai's gold trade efficient and maintains its position as the global re-export hub

Practical Advice for Different Buyer Types

• Tourist buying jewellery: Always buy from a Tax Free participating shop, claim the VAT refund at the airport — it is free money on the table
• UAE resident buying jewellery: Factor the 5% VAT into your budget; it is unavoidable
• Investor buying bars/coins: Ensure the product explicitly qualifies as investment gold to avoid being charged VAT
• Business buyer: Register for VAT and use the reverse charge mechanism to manage cash flow on bulk purchases