UAE Clarifies VAT Reverse Charge Mechanism for Precious Metals and Stones, Effective February 26

• The Emirati Federal Tax Authority issued Public Clarification No. VATP043 on April 30
• It explains the VAT reverse charge mechanism for precious metals and stones effective February 26
• The mechanism now includes specified precious metals other than gold, precious stones other than diamonds, and jewelry made from them
• Recipients must be VAT-registered in the country, intend to resell or use the goods in manufacturing, and provide a written declaration to the supplier
• Suppliers must receive and retain the declaration before the supply date and verify the recipient’s VAT registration
• The mechanism does not apply to jewelry manufacturing services, with some exceptions
• This clarification replaces Public Clarification No. VATP032

Source: news.bloombergtax.com

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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