- The UAE Federal Tax Authority issued VAT Public Clarification VATP043 on the reverse charge mechanism for precious metals and stones.
- This follows Cabinet Decision No. 127 of 2024, effective from 26 February 2025, expanding the reverse charge scope.
- The decision replaces VATP032, which covered only gold and diamonds.
- The reverse charge now includes gold, silver, palladium, platinum, diamonds, pearls, rubies, sapphires, and emeralds.
- Conditions for applying the reverse charge include the recipient being VAT registered in the UAE and intending to resell or use the goods in production.
- The recipient must provide a written declaration confirming VAT registration and intent to resell or use the goods.
- The supplier must receive and verify the declaration before supply.
- The reverse charge applies only to goods, not services, unless part of a composite supply.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
