UAE Introduces New VAT Regulations for Precious Metals and Stones

New Cabinet Decision Expands the application of Reverse Charge Mechanism

This new rule repeals Cabinet Decision No. (25) of 2018, which previously outlined VAT rules for gold and diamonds among registered dealers. Previously, the reverse charge mechanism was restricted to the supply of gold and diamonds between VAT-registered businesses.

Key Points of the New Decision:

• Reverse Charge Mechanism now applies to supplies of precious metals, precious stones, and jewelry products made from these materials subject to the conditions mentioned in this decision.
• VAT-registered suppliers are no longer responsible for charging and collecting VAT on supplies of goods covered in this decision, provided the stipulated conditions are met.
• Instead, buyers will account for the VAT on both the sale and purchase of goods in their VAT returns, provided that both parties are registered for VAT in the UAE.

This change is expected to deliver significant advantages to businesses by simplifying compliance and improving cash flow. It reflects the UAE government’s continued commitment to enhancing the competitiveness of the precious metals and stones trading sector.

How Can AMCA Help?

At AMCA, we specialize in guiding businesses through complex VAT regulations. Our experts can help you understand the new Reverse Charge Mechanism and ensure your business stays compliant. Book a free 30-minute consultation today to learn how these changes impact your operations.

At AMCA, we understand the complexities of VAT regulations and the importance of staying compliant. Our expert team is here to guide you through these updates and ensure your business remains compliant with the new VAT regulations.

Book a free 30-minute consultation with our VAT experts today to learn how these changes impact your operations.

Contact AMCA Today!

If you have any questions or need assistance, don’t hesitate to reach out to us. Book your free consultation now and ensure your business stays on top of its VAT obligations.

We look forward to helping you navigate these changes and optimize your business operations.

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