UAE Shifts VAT Burden on Gems from Seller to Buyer
January 15, 25
(IDEX Online) - The UAE has introduced changes to VAT rules for precious stones and metals, shifting the burden from the seller to the buyer in a move designed to streamline sales.
Its reverse charge mechanism - which requires buyers rather than sellers to calculate and report VAT in their tax returns - has been expanded to cover transactions involving gold, silver, palladium, platinum, diamonds and pearls.
The Ministry of Finance introduced the change on 1 January 2025, the first major revision since VAT was implemented in UAE in 2018.
It will reduce administrative burden, improve cash flow, align UAE more closely with global best practice and make it easier for businesses to focus on their core operations.
The ministry said the move reflects an ongoing commitment to support the precious metals and gemstones trading sector.