Tax for Gold in UAE – A Complete 2025 Guide for Buyers and Investors

Gold has always been critical within the UAE's financial system and subculture. Dubai, often known as the "city of Gold," attracts hundreds of thousands of consumers and buyers from around the world each year. The city's famous souks, aggressive charges, and strict standards for gold purity make it one of the us of a's maximum valuable commodities.

However, because the introduction of the fee brought Tax (VAT) in 2018, many citizens, travellers, and traders have questions about how gold is taxed. The information gold tax within the UAE is mainly critical in case you're shopping for jewellery, investing in gold bullion, or worried about wholesale gold trade.

This newsletter covers everything about VAT on gold in the UAE, consisting of guidelines for funding gold, jewellery purchases, enterprise transactions, and the way gold VAT impacts both clients and traders. We will also provide beneficial recommendations and provide an explanation for the position of the presidency, our bodies like the UAE Federal Tax Authority and the UAE Ministry of Economy.

Why Gold Matters in the UAE

Gold isn’t just an investment in the UAE; it’s part of the culture, lifestyle, and economy.

• Cultural importance – Gold jewelry is gifted at weddings, festivals, and family events.
  
  

• Tourism driver – Visitors from across the world travel to Dubai to purchase gold jewelry and bullion.
  
  

• Global trade hub – Dubai has one of the busiest gold markets in the world, handling billions of dollars in transactions annually.
  
  

• Safe-haven investment – Investors see gold as a hedge against inflation, global uncertainty, and currency fluctuations.
  
  

Because of its importance, the tax on gold in the UAE has been structured carefully to maintain Dubai’s global reputation while aligning with modern tax laws.

VAT on Gold in UAE – An Overview

The UAE introduced Value Added Tax at a rate of 5% in 2018. While it applies to most goods and services, gold received a special framework to keep the UAE competitive.

There are two main categories of gold under VAT:

1. Investment Gold
   
   

• Defined as gold with 99% purity or higher.
  
  

• Sold in the form of bars, coins, or ingots.
  
  

• Considered as a financial instrument.
  
  

• VAT is zero-rated, meaning no tax is charged on these purchases.
  
  

2. Gold Jewellery and Ornaments
   
   

• Includes rings, bracelets, necklaces, and other items crafted from gold.
  
  

• Considered luxury items.
  
  

• Subject to a 5% VAT charge on both gold value and making charges.
  
  

This framework ensures that VAT on gold in UAE does not discourage international investors while still generating revenue through jewelry trade.

Tax for Gold in UAE – How it Works

The tax for gold in UAE relies on whether the acquisition is assessed as earrings or funding gold.

• jewellery shoppers – if you buy gold earrings from Dubai Gold Souk or other shops, you pay 5% VAT on the overall bill, which includes the gold weight and making prices.

• Investors – When buying bullion or coins with 99% purity, VAT is not charged, as this category is treated as investment gold.
  
  

• Gold Businesses – For traders registered with the tax authority, a reverse charge mechanism applies. This means VAT is not paid at the time of purchase; instead, the buyer records both input and output VAT in their returns.
  
  

This system allows Dubai to remain competitive while ensuring transparent compliance with tax regulations.

VAT on Gold Purchase in UAE

When we talk about VAT on gold purchases in the UAE, the impact varies depending on the buyer:

1. Residents and Expats – Must pay 5% VAT when buying gold jewellery. For example, a necklace worth AED 5,000 will include AED 250 in VAT.
   
   

2. Tourists – Must also pay VAT but can claim a refund at departure airports through the UAE’s official tourist refund scheme.
   
   

3. Investors – Buying gold bars, coins, or ingots with 99% purity or more are not subject to VAT.
   
   

So, while the gold VAT UAE applies to luxury items like jewellery, investment-grade gold remains exempt, keeping Dubai attractive for global buyers.

Gold VAT in UAE – Market Impact

The introduction of gold VAT in UAE had mixed reactions initially, but the market quickly adjusted.

• For jewellery buyers – Prices are slightly higher due to VAT, but Dubai’s low premiums and competitive making charges keep prices lower than in many other countries.
  
  

• For investors – The exemption on investment gold ensures Dubai remains a top global hub for bullion trade.
  
  

• For businesses in the UAE – Compliance has increased transparency and improved investor trust in the UAE gold market.
  
  

Despite VAT, Dubai still offers one of the best environments for gold trading worldwide.

Role of UAE Government Authorities

Two government bodies play a crucial role in gold taxation and trade:

• UAE Federal Tax Authority – Oversees VAT collection, regulations, and refund processes.
  
  

• UAE Ministry of Economy – Regulates trade policies, hallmarking standards, and gold market transparency.
  
  

These organisations ensure that the gold VAT UAE rules are applied consistently, keeping Dubai’s reputation as a trusted international hub intact.

Why Work with Experts for Compliance

Whilst the tax on gold in the UAE can also sound honest, organisations and investors regularly want professional guidance to stay compliant. filing VAT successfully, handling reverse rate mechanisms, and structuring gold trades in step with regulations requires professional help.

Work with RAS Corporate Advisor

At the RAS corporate guide, we focus on assisting individuals, traders, and agencies in navigating the UAE tax guidelines smoothly. whether or not you’re setting up a gold trading enterprise, shopping for investment gold, or ensuring compliance with VAT on gold buy in UAE, our group can guide you every step of the way.

Contact RAS Corporate Advisor today for tailored advice on gold VAT, company formation, and corporate tax solutions in the UAE.

Conclusion

The tax for gold in the UAE is designed to balance consumer interests, investor appeal, and government revenue. Earrings shoppers need to pay a 5% VAT on gold in UAE, whilst traders take advantage of exemptions on bullion and coins. The difference between taxable jewellery and 0-rated funding gold permits Dubai to keep its international popularity as the “city of Gold.”

With the aid of know-how, gold VAT in the UAE and its application on purchases, each consumer and investor can make informed choices. And with guidance from relied on partners like the RAS company guide, businesses and people can expectantly navigate VAT compliance and make the maximum of opportunities in the UAE gold market.

Tax on Gold in UAE – FAQs

Q1: Is there a tax on gold in the UAE?
Yes, jewellery carries a 5% VAT, while investment gold is VAT-exempt.

Q2: What is the VAT rate on gold in the UAE?
The standard VAT rate is 5%, but investment gold with 99% purity or more is zero-rated.

Q3: Can tourists get VAT refunds on gold?
Yes, tourists can claim VAT refunds at airports on eligible purchases.

Q4: Does VAT apply to making charges?
Yes, 5% VAT applies to both the gold value and making charges.

Q5: Why is Dubai still attractive despite VAT?
Low premiums, high purity assurance, and VAT exemptions for investment gold keep Dubai competitive.