New VAT Rules for Precious Metals and Stones in the UAE

News for businesses in the UAE dealing with precious metals and stones. The government has introduced Cabinet Decision No. 127 of 2024, which expands the Reverse Charge Mechanism (RCM) for VAT, effective 25 February 2025. 

Key Highlights: 

Expanded Scope: The RCM now covers gold, silver, palladium, platinum, diamonds (natural and synthetic), pearls, rubies, sapphires, emeralds, and related jewelry. 

Mechanism: VAT-registered suppliers no longer charge VAT on eligible transactions. Instead, VAT-registered buyers declare and pay VAT in their returns. 

Compliance: Businesses must maintain proper documentation and adapt their VAT accounting practices to align with the new rules. 

Objective: To enhance competitiveness in the UAE’s precious metals and stones market while streamlining VAT processes. 

What This Means for You: If you’re a VAT-registered entity in this sector, it’s time to review your processes, ensure compliance, and maximize the benefits of this update. 

Let’s work together to navigate these changes and stay ahead!