UAE Expands Reverse Charge Mechanism for Precious Metals and Stones Effective February 2025

• 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.

Source:

• orbitax.com
• VATP043

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.

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