UAE is the main centre of trade in gold in the world. Understanding gold tax in UAE is important for investors, traders, and shoppers. Whether it is buying jewellery or investing in bullion, understanding the tax position can help you save money and avoid errors. This guide tells you all about it including VAT rules, exemptions, refunds and trading tips in 2025.
Value Added Tax (VAT) on Gold
The UAE applies mandatory VAT of 5 percent on most goods and services including gold. Nevertheless, the VAT regulations vary on the nature and the purity of the gold. To estimate the tax that people pay in buying gold, they can use a VAT calculator.
Gold Jewellery and Non-Investment Gold
A necklace, bracelet, ring, and earrings made of gold (18K, 21K, 22K) are bound to pay 5% VAT. This tax applies to the gold’s weight, making charges, and any design or service fees.
For example, you purchase a 22K gold necklace of AED 15,000, the value-Added Tax (VAT) to be charged would be AED 750. A VAT calculator may help you make this calculation less challenging and have no doubts about the sum of money you need to pay.
Investment-Grade Gold
Gold that meets the UAE’s definition of investment-grade precious metals is zero-rated for VAT purposes. To qualify:
Purity: The gold must have a purity of 99% or higher, typically 24K.
Form: It must be tradable, like bullion bars or coins.
Sellers do not charge VAT on such gold, but businesses can claim input tax on costs like storage, transport, or security. This makes Dubai very attractive for investors looking to buy large quantities.
Reverse Charge Mechanism in the UAE
The UAE has expanded the reverse charge mechanism UAE to cover precious metals traded between businesses. Under this system, buyers report both input and output VAT in the same tax period, resulting in a net-zero payment.
The reverse charge process prevents VAT fraud, promotes liquidity, and promotes the smooth business-to-business trade. An example is the jewellery store that purchases gold bars through a supplier and they simply contact VAT in their tax filing instead of paying it in advance, making this easier in terms of cash flow.
Tax on Gold Trading in the UAE
The UAE is highly tax-friendly for gold investors. There is no income tax or capital gains tax on gold profits for individuals. Import duty on investment-grade gold is also zero.
This makes Dubai a preferred destination for traders and collectors. Investors can trade large quantities without worrying about hidden charges or extra costs.
Gold traders in Dubai also benefit from well-regulated markets and transparency in pricing. Certified dealers and gold souks maintain competitive rates, making Dubai one of the safest places to invest in gold globally.
VAT Refunds for Tourists
Tourists purchasing gold jewellery in the UAE can claim a VAT refund when leaving the country.
Gold must leave the UAE within 90 days.
Purchases must meet a minimum value.
Refunds are processed at airport counters using invoices and passports.
This is an advantage to international shoppers since it makes Dubai more appealing. Many tourists visit with the purpose of both sightseeing and purchasing gold, where the VAT can be claimed back. Calculating VAT pending refund with the help of a calculator will help to know the exact amount in advance
Compliance and Documentation
Businesses must follow strict rules to benefit from VAT exemptions on investment-grade gold:
Maintain tax invoices.
Keep certificates of authenticity.
Have proof of VAT registration.
Record all transactions.
Failure to comply can lead to fines or loss of VAT exemptions. These rules maintain transparency and protect investors from fraud. Keeping proper documentation also helps businesses claim zero-rated VAT benefits on investment-grade gold.
Tips for Buyers and Investors
Check Purity: Always verify if the gold is 24K, 22K, or 18K. Purity determines VAT eligibility.
Use a VAT Calculator: Plan purchases with a VAT calculator to know exact costs.
Compare Rates: Prices can differ between souks and certified stores. Compare before buying.
Tourist Refunds: If you are a visitor, keep invoices for VAT refunds at the airport.
Trade Documentation: For large investments, ensure all certificates and invoices are authentic.
Conclusion
Understanding gold tax in UAE and tax on gold in UAE helps buyers, investors, and businesses make informed decisions. Using a VAT calculator before purchases saves money and avoids surprises. Knowing the reverse charge mechanism UAE is crucial for businesses trading gold.
Whether you are buying jewellery, investing in bullion, or trading gold, staying updated on taxes and rules ensures smooth and compliant transactions. Dubai continues to be a profitable and safe destination for gold trading in 2025.
Frequently Asked Questions (FAQs)
1. Is 24K Gold Tax-Free in the UAE?
Not necessarily, 24K gold is not tax-free. In UAE, 24K gold jewellery is normally rated at the standard gold tariff, whereas investment-grade gold (99 percent and above) is treated as zero-rated.
2. Is There Tax in Dubai on Gold?
Yes, Dubai applies a 5% VAT on most gold transactions. Businesses selling investment-grade gold follow the reverse charge mechanism UAE, while other gold jewellery is taxed normally. This reflects the tax on gold in UAE policies.
3. What Is the Rate of 22K Gold in UAE Today with VAT?
22K gold prices fluctuate daily. The 5% VAT is applied to the total invoice, including the gold’s weight, making charges, and any service fees. Buyers should check live market rates before purchasing.
4. Is It Cheaper to Buy Gold in Dubai?
Dubai also has competitive prices of gold because there is no import tax, and tourists are refunded VAT. By using a VAT calculator, you will calculate precise expenses. Dubai is relatively cheaper to buy gold as compared to many countries.
