Gold VAT in the UAE: 5% on Jewellery, Zero on Bullion

When you buy gold jewellery in the UAE — a necklace, a bangle, a ring — 5% VAT applies to the full price, including making charges. The jeweller adds the VAT to the bill and shows it on the invoice. There is no exemption for jewellery, whatever the karat.

Always ask whether a quoted price includes VAT. Some shops quote the metal value and making charges and add VAT at the till; others quote VAT-inclusive. The difference is 5% of the total — enough to matter on a large purchase, and the most common source of confusion for visitors.

Investment-grade bullion — gold of 99% purity or better, in bars, ingots or coins of a type traded on international markets — is zero-rated for VAT in the UAE. That means no VAT is charged when you buy it. This is a deliberate policy to make the UAE a competitive bullion hub, and it is one reason Dubai is a popular place to buy bars.

The zero rating applies to the bullion itself. If a dealer charges a service fee or a making charge on top, the VAT treatment of that fee can differ — ask for the breakdown. And the zero rating does not apply to jewellery, even if it is 24K: a 24K bangle is jewellery, not bullion.

For business-to-business sales of gold, the UAE uses the reverse charge mechanism: the buyer, not the seller, accounts for the VAT. This is designed to prevent fraud in the gold trade, which is a high-value, high-volume market. It mainly affects dealers and jewellers rather than retail buyers, but it is why the paperwork in the UAE gold trade is taken seriously.

For ordinary buyers, the reverse charge is invisible — you pay the price on the invoice, including VAT where it applies. But it is one reason UAE jewellers are careful with invoices: the paper trail matters to them as much as to you.

Tourists can reclaim VAT on purchases made in the UAE, including gold jewellery, through the Tourist Refund Scheme (operated at airports and borders). The goods must be taken out of the country, and the refund is processed at the airport — keep the tax invoice and the goods accessible for inspection.

The refund does not cover the full 5% — a processing fee is deducted — but it is still worth claiming on a significant purchase. Check the current scheme rules at the airport, as thresholds and procedures change.

For jewellery, budget 5% VAT on top of the metal value and making charges — and ask whether quotes include it. For investment bars and coins, buy zero-rated bullion and pay no VAT at all. For tourists, keep invoices and claim the refund at the airport.

The UAE's gold tax system is simple and transparent compared with most countries — which is part of why Dubai became a gold hub. The rules are stable, but check the Federal Tax Authority's current guidance for any changes.