UAE VAT on gold jewellery: 5%, zero-rating, reverse charge and exports
Investment gold, wholesale jewellery and exports are all treated differently for VAT. A field guide for the invoice you actually issue.
UAE VAT has applied at the standard rate of 5% since 2018, but gold is one of the few products with three different treatments depending on what is sold and to whom.
Investment-grade gold is zero-rated
Gold of at least 99% purity that is tradable on the global bullion market (bars, ingots, certain coins) is zero-rated. Jewellery is not investment gold, however pure the alloy, so a 22K bangle attracts VAT even though the metal in it might not.
Reverse charge between registered businesses
Where both seller and buyer are VAT-registered in the UAE, supplies of gold and diamonds, and since 2025 a wider range of precious metals, stones and jewellery made from them, fall under the reverse charge mechanism. The seller does not charge VAT; the buyer accounts for it on their own return. The invoice must state that the reverse charge applies and carry the buyer's TRN, and the seller should hold a written declaration from the buyer that they are registered and will account for the tax.
Exports are zero-rated, with proof
A direct export to Iraq or elsewhere outside the GCC implementing states is zero-rated provided the goods leave the UAE within 90 days and you retain commercial evidence (invoice, packing list, airway bill) and official evidence (the customs exit certificate). Without the paperwork the FTA treats the sale as a domestic standard-rated supply.
What the tax invoice must show
- The words “Tax Invoice”, a unique sequential number and the date
- Seller name, address and TRN; buyer TRN where reverse charge applies
- Description, quantity, net weight and unit price per line
- The VAT rate and amount per line, or the reverse-charge statement
- Amounts in AED, with the exchange rate where the invoice is in USD
Retention
Tax records are kept for five years after the end of the tax period. AurumIQ prints the applicable VAT treatment on every invoice and freezes the rate and exchange rate into the signed QR payload, so the document you show the FTA is the one the customs officer scanned.
General information for gold traders in the UAE, not legal or tax advice. Rules change; confirm the current position with the Ministry of Economy, the Federal Tax Authority or your compliance adviser before acting.