VAT on Gold in Dubai & UAE – How to Avoid, Reclaim, or Bypass It Legally
Table of Contents
Understanding VAT on Gold in the UAE
Since January 1, 2018, the UAE has applied a 5% VAT on most goods and services as part of its federal tax system. For gold buyers — especially tourists and investors — this introduced new rules, but also new opportunities to reduce or eliminate tax legally.
It’s important to understand that not all gold is treated the same under VAT laws. While some purchases are taxed at the full 5%, others are completely zero-rated, meaning no VAT is applied at all.
If you’re planning to buy gold in Dubai — one of the world’s top destinations for gold trading — you need to know how VAT works and how to legally avoid paying it when possible.
💡 For a quick comparison between taxed and untaxed gold, see:
👉 When Do You Pay and When Not? – VAT on Gold Explained »
When Does VAT Apply to Gold?
The VAT treatment of gold depends on three factors:
⦁ Form (Is it jewelry, bars, coins?)
⦁ Purity (Is it 99.9% or lower?)
⦁ Purpose (Is it personal use or investment?)
Here’s a breakdown:
| Gold Type | Typical Purity | VAT Rate | Notes |
|---|---|---|---|
| Investment gold bars | 24K / 999.9 | 0% | Must meet export/investment criteria |
| Gold coins | 24K / 999.9 | 0% | Legal tender or bullion coins only |
| Jewelry | 18K–22K | 5% | Includes labor and design, which is taxed under the standard VAT rate |
| Custom designs | Varies | 5% | Handcrafted or gemstone-adorned |
📝 Why is jewelry taxed?
Because it’s considered a consumer good with added value (design, labor), not a financial asset.
✅ Learn about VAT on gold Pro Tip:
Ask the store for documentation about VAT classification. Many high-end stores like Damas, Malabar, or Joyalukkas have separate counters for investment gold.
What Qualifies as Investment Gold?
To qualify as “investment gold” under UAE tax law (Federal Decree-Law No. 8 of 2017 on VAT), the item must meet all of the following conditions:
✔️ Be in physical form (bar or coin)
✔️ Have a purity of 99% or higher
✔️ Be sold by a registered dealer
✔️ Be documented with a valid invoice stating 0% VAT
Investment gold is considered a “zero-rated supply” is a term related to VAT on the gold, not an exempt supply. This means the seller can still claim input tax, while the buyer pays 0% at checkout — a win-win for both sides.
❗ Beware: Not all gold bars in tourist areas meet the documentation criteria. Always buy from well-known, VAT-registered jewelers.
Tourist VAT Refund: Step-by-Step Guide
If you’re visiting Dubai and buy gold jewelry (subject to 5% VAT), you may reclaim most of that tax when you leave the country.
Here’s how the Planet Tax Free system works:
Step-by-Step VAT Refund Process:
Spend AED 250 or more in a participating store
Ask for a Tax Free sticker/tag on your receipt
Scan your passport during the purchase
Keep the original receipt and sticker
At the airport (before passport control), visit the VAT Refund counter
Show:
✔️ Passport
✔️ Tagged receipt
✔️ Your gold items (if requested)
Get up to 85% of VAT refunded, usually to your credit card
📸 Some kiosks may take a photo of the item. Always keep the box or packaging until after refund.
⏱️ Expect queues at the airport, especially on weekends. Arrive early.
👉 For full steps with pro tips, read:
How to Get a VAT Refund on Gold VAT in Dubai »
Summary – Legal Ways
to Avoid or Reclaim VAT
You can legally avoid or reclaim VAT on gold in Dubai by following three main strategies:
| Method | VAT Rate | Best For | Key Requirement |
|---|---|---|---|
| Buy investment gold | 0% | Investors, expats | 24K, VAT-registered dealer, invoice |
| Claim tourist refund for VAT paid on gold jewelery purchases | 5% → Refund | Tourists buying jewelry | Tax Free tag + airport refund |
| Export purchases | 0% | International buyers | Export invoice + courier shipping |
📌 Always check:
Purity mark (e.g. 999.9)
Invoice with VAT classification
Whether seller is registered for VAT
Find Dubai Gold Shops.
Search by Map,
Category, or Name.
