In the UAE, gold, silver and platinum of at least 99% purity in a form traded on global bullion markets are zero-rated for VAT. Other gold, including most jewellery, is taxed at the standard 5% rate.
The rule: 0% for investment metals, 5% for the rest
The UAE introduced VAT at a standard rate of 5% under Federal Decree-Law No. 8 of 2017. Article 45 of that law lists zero-rated supplies, and the supply or import of investment precious metals is one of them. The Executive Regulation (Cabinet Decision No. 52 of 2017) defines what counts. The metal must meet both tests:
- Metal: gold, silver or platinum.
- Purity: 99% or more.
- Form: tradeable in global bullion markets, such as standard bars and bullion coins.
Zero-rated is not the same as exempt. The dealer still issues a tax invoice and stays in the VAT system, but the rate on the line is 0%.
What this means for common products in the UAE
| Product | Purity | VAT treatment |
|---|---|---|
| 1 kg bar, TT bar, 1 oz minted bar | 999.9 or 999 | 0% |
| Britannia, Maple Leaf, Panda gold coin | 999.9 | 0% |
| Krugerrand, American Gold Eagle | 916.7 (22 carat) | Below the 99% test, so 5% applies |
| 22K, 21K or 18K jewellery | 916 to 750 | 5% |
| Palladium bars | 999.5 | Not in the definition, so 5% applies |
The Krugerrand line surprises many buyers who come from Europe, where 22 carat coins count as investment gold. In the UAE the threshold is 99%, so a 22 carat coin does not qualify. A coin that looks cheaper per ounce can end up dearer once 5% is added. That is why our gold coin price comparison is worth reading together with the tax line on the invoice.
Worked example on jewellery
Suppose a 22K bangle is invoiced at AED 10,000 including making charges (a round figure for illustration). VAT at 5% adds AED 500, so you pay AED 10,500. A 999.9 bar with the same invoice value carries no VAT. Neither figure says anything about the gold content, which you can check with our karat guide and the fineness stamp.
Trade between dealers and cash rules
Since 2018 the UAE has used a reverse charge mechanism between VAT registered dealers in gold. Cabinet Decision No. 127 of 2024 replaced the original 2018 decision and extended the mechanism to silver, platinum, palladium, diamonds, pearls and other precious stones traded between registrants. It does not apply to zero-rated supplies such as investment precious metals. For private buyers nothing changes: you pay 5% on standard rated items and 0% on investment bullion.
Separately from tax, dealers in precious metals and stones must identify buyers and report cash transactions of AED 55,000 or more to the UAE Financial Intelligence Unit through goAML. Expect to show your Emirates ID or passport for large cash purchases. Paying by card or bank transfer does not trigger that cash report. When you compare offers, start from the cheapest gold coins in the UAE and look at the premium over spot after VAT.
Related terms
Fineness Karat Bullion Premium over Spot
FAQ
Is there VAT on gold bars in Dubai?
Gold bars of 99% purity or more in a form traded on global bullion markets are zero-rated, so the VAT rate is 0%.
Do I pay VAT on gold jewellery in the UAE?
Yes, gold jewellery is a standard rated supply, so 5% VAT is charged on the invoice value.
Is the Krugerrand VAT-free in the UAE?
No, the Krugerrand is 22 carat (916.7), which is below the 99% purity required for zero-rating, so 5% VAT applies.
Sources
- Federal Tax Authority: Executive Regulation of Federal Decree-Law No. 8 of 2017 on VAT (Cabinet Decision No. 52 of 2017)
- Federal Tax Authority: Cabinet Decision No. 127 of 2024 on the Reverse Charge Mechanism for Precious Metals and Stones
- UAE Ministry of Finance: Value Added Tax
- UAE Financial Intelligence Unit: Dealers in Precious Metals and Stones