What’s the new VAT law for precious metals and jewellery?

The law expands reverse charge rules to cover metals, stones, and jewellery beyond gold and diamonds.

What items are included under the new rules?

Gold, silver, platinum, palladium, diamonds, rubies, emeralds, pearls, sapphires, and jewellery.

How does the reverse charge mechanism work?

Buyers report and pay VAT directly instead of sellers.

What should businesses do to prepare?

Update contracts, train staff, adjust VAT systems, and consult experts like Mubarak Al Ketbi (MAK) Auditing.

Why did UAE update VAT rules?

To improve compliance, attract investors, and strengthen UAE’s position as a global business hub.

VAT Law Updates for Precious Metals and Jewellery 🥇

Introduction: VAT Law Updates for Precious Metals and Jewellery

VAT law updates for precious metals and jewellery are now a major focus for UAE businesses. The government announced Cabinet Decision No. 127 of 2024, replacing earlier rules. These updates expand the reverse charge mechanism beyond gold and diamonds to cover a larger list of metals, stones, and jewellery.

Mubarak Al Ketbi (MAK) Auditing explains how these VAT updates work, why they matter, and what businesses must do to stay compliant.

What’s New in the VAT Law for Precious Metals and Jewellery?

The new law aims to simplify VAT compliance for registrants and improve cash flow. Earlier, rules applied only to gold and diamonds. Now the scope is wider.

Covered under the new rules:

Precious Metals: Gold, silver, platinum, palladium.
Precious Stones: Diamonds, rubies, emeralds, sapphires, pearls (natural or artificial).
Jewellery: Any item partly or fully made with these metals or stones.

This update replaces Cabinet Decision No. 25 of 2018. The change means more businesses in luxury sectors must follow reverse charge rules.

What Is the Reverse Charge Mechanism (RCM)?

In normal VAT, sellers collect tax from buyers and pay it to the government. Under RCM, buyers report and pay VAT themselves.

Why this matters:

Stops tax evasion.
Simplifies rules for sellers.
Streamlines large-value transactions.

This system supports transparency and makes high-value trading easier.

Preparatory Measures for Businesses

Businesses must act quickly to follow the new rules. Steps include:

Check Contracts: Agreements must state who reports VAT.
Train Staff: Sales, finance, and audit teams need updates.
Update Systems: Invoicing and VAT software must handle RCM.
Consult Experts: Work with Mubarak Al Ketbi (MAK) Auditing or contact the FTA for guidance.

Preparation ensures smooth compliance with UAE tax law.

Why Did UAE Update the VAT Law?

The UAE wants to stay a top global hub for trade. This VAT update supports that vision.

Encourages investment in luxury sectors.
Simplifies compliance for registrants.
Improves financial transparency in markets.
Attracts foreign traders with clear, fair tax rules.

The government expects this reform to drive long-term growth in precious metals and jewellery businesses.

Impact on Precious Metals and Jewellery Sector

The VAT changes bring challenges but also opportunities.

Positive impacts: Better cash flow, easier global trade, stronger investor trust.
Challenges: Businesses must adjust systems, train staff, and review contracts.

Those who prepare early will benefit the most from the changes.

What Can Help You – Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing helps businesses in UAE manage VAT law updates, including reverse charge rules for jewellery and precious metals. Their experts provide training, compliance checks, and full tax support to keep you ahead of penalties and competition.

👉 For more information, visit or contact us:

📍 Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
📞 +971 50 276 2132 (Call/WhatsApp)

Remember, “a stitch in time saves nine”. Preparing early ensures compliance and avoids costly mistakes.

FAQs VAT Law Updates for Precious Metals and Jewellery 🥇

How does corporate tax help a start-up’s growth?

Corporate tax teaches start-ups to keep better records, plan smartly, and look more trustworthy, which can help them get more investments.

Are there any special tax breaks for new tech companies in the UAE?

Yes, tech companies can get tax holidays, pay zero tax on profits below a certain level, and keep special rates in some Free Zones.

Why is corporate tax good for fair business?

Corporate tax makes sure every business pays its part, so big firms can't get ahead by skipping taxes. This creates a level playing field for start-ups and supports public services.