VAT on Gold in Dubai – Everything You Need to Know in 2025

UAE VAT on Gold – The Basics

The UAE introduced a 5% Value Added Tax (VAT) on January 1, 2018, under Federal Decree-Law No. 8 of 2017. However, the tax treatment of gold is nuanced and depends heavily on what type of gold product you are buying. Getting this right can save you significant money — particularly on large purchases.

VAT-Exempt Gold in Dubai

The UAE Federal Tax Authority (FTA) classifies investment-grade precious metals as zero-rated for VAT purposes. This means the following gold products are effectively VAT-free at point of purchase:

• Gold bars with a purity of 99% or higher (24K/999 fineness)
• Gold coins with a purity of 99% or higher (such as Canadian Maple Leaf, Austrian Philharmonic, or UAE Falcon gold coins)
• Other investment-grade precious metal products that meet the FTA's definition of "investment metals"

This zero-rating makes Dubai one of the most attractive places in the world for gold investors. Compare this to the UK (VAT-exempt on investment gold), Germany (VAT-exempt), but France and Italy (VAT-exempt for bars/coins over 99% — same as UAE), and the UAE's rule is competitive globally.

Gold Jewellery: 5% VAT Applies

Gold jewellery — regardless of karat — is subject to the standard UAE VAT rate of 5%. This includes:

• 22K, 21K, and 18K necklaces, bracelets, rings, and earrings
• Bridal gold sets
• 24K jewellery (despite being 99.9% pure, jewellery is categorised differently from investment bars)
• Gemstone-set jewellery (VAT applies to the full piece value)

At 5%, UAE jewellery VAT remains among the lowest in the world. The UK charges 20% VAT on jewellery, EU countries charge 20–25%, and India levies 3% GST specifically on gold jewellery (though other taxes apply).

How VAT Appears on Your Receipt

All VAT-registered gold retailers in Dubai must issue a tax invoice showing:

• The dealer's Tax Registration Number (TRN)
• The net price (before VAT)
• The VAT amount (5% of net price)
• The gross total (price + VAT)

Always request a proper tax invoice — this is required for a VAT refund claim and is also your guarantee that the shop is operating legally.

VAT Refund for Tourists

Tourists (non-UAE residents) who purchase gold jewellery in Dubai can claim a full refund of the 5% VAT paid before departing the UAE. The refund scheme is operated by Planet and is available at all major UAE airports.

How to Claim Your VAT Refund

1. At the shop: Ask for a "Tax Free" tag to be attached to your purchase. Not all shops participate — confirm before buying if this matters to you. Most established Gold Souk shops and all mall retailers are enrolled.
2. At the airport: Proceed to a Planet VAT refund kiosk or desk before check-in. You will need your passport, tax invoice, Tax Free tag, and the goods.
3. Refund method: Refunds are issued as cash (AED), credit to your card, or to a travel-money card. Cash refunds have a small admin fee (approximately AED 4.80 per claim).
4. Minimum spend: AED 250 per receipt at a single retailer.

VAT on Reselling Gold in Dubai

When you sell gold jewellery back to a dealer in Dubai, the buyback transaction may trigger VAT considerations for the dealer, but as an individual seller you do not charge VAT. You simply receive the gold's buy-back value in cash or by transfer.

Practical Example: The Real Cost of Gold Jewellery in Dubai

A 20-gram 22K necklace in Dubai (2025 approximate):

• Metal value: 20g × AED 275 (22K rate) = AED 5,500
• Making charges: 20g × AED 8/gram = AED 160
• Subtotal: AED 5,660
• VAT (5%): AED 283
• Total: AED 5,943
• After tourist VAT refund: AED 5,660 — effectively zero tax

For a tourist, the VAT is entirely recoverable. For a UAE resident, the 5% is the final cost — still far below what jewellery taxes cost in most other countries.