VAT on Investment Gold vs Jewelry
in Dubai – What’s the Difference?
Table of Contents
Why Is VAT Different for Gold Bars and Gold Jewelry?
In Dubai and across the UAE, Value Added Tax (VAT) is applied differently depending on the type and purpose of the gold product.
Here’s the basic rule:
- Gold Jewelry = 5% VAT (consumer product)
- Investment Gold = 0% VAT (financial asset)
This tax distinction is not random. It’s defined in UAE VAT law, and it directly affects your price at checkout — and your ability to save money or claim exemptions.
What Is Investment Gold?
Investment gold is a category defined by both form and purity. According to UAE tax law (Federal Decree-Law No. 8 of 2017 on VAT), gold is considered investment-grade when it:
- Is in the form of bars or coins
- Has a purity of at least 99% (24 karats)
- Is sold by a VAT-registered supplier
- Comes with a proper invoice marked as “zero-rated”
💰 This type of gold is zero-rated for VAT, meaning you pay 0% tax, and the seller can still claim VAT on their inputs.
What Is Taxable Gold Jewelry?
Gold jewelry is considered a consumer good, often crafted with:
- Lower purity (e.g. 18K, 21K, 22K)
- Decorative elements (e.g. diamonds, enamels, engraving)
- Labor-intensive design
These features add value to your investment in dubai gold beyond the gold itself — and make the product subject to the standard 5% VAT in the UAE.
Even though it may contain gold, jewelry is exempt from VAT if certain conditions are met and not considered a financial investment asset under the tax code.
Summary: Key Differences
| Feature | Investment Gold | Gold Jewelry |
|---|---|---|
| Form | Bars, coins, and other forms of gold bullion are subject to VAT in the UAE. | Rings, necklaces, bracelets |
| Purity requirement | Min. 99% (24K) | Usually 18K–22K |
| Tax status in UAE | 0% VAT (zero-rated) | 5% VAT (taxable supply) |
| Eligible for VAT refund? | ❌ No (already 0%) | ✅ Yes (for tourists) |
| Purpose | Financial asset | Personal use / decoration |
Example Scenarios
💰 Scenario 1: Buying a 24K gold bar
You visit a VAT-registered store, buy a 100g 999.9 gold bar with a certified invoice.
→ No VAT is charged if it’s marked as investment gold.
💍 Scenario 2: Buying a 22K gold necklace
Even if it’s lightweight and simple, it’s treated as jewelry.
→ 5% VAT is applied to the total cost, including craftsmanship.
Can Jewelry Ever Be VAT-Free?
Yes, but only in one case: when it’s exported outside the UAE.
If you buy jewelry online and the seller ships it to another country with proper export documents, the sale qualifies as a “zero-rated supply” under gold VAT regulations. 0% VAT under export rules.
Learn more:
👉 Buying Gold from Dubai Online – How to Avoid VAT Legally »
Tourist Tip – VAT Refund on Jewelry
If you’re a tourist, you can claim back the 5% VAT you paid on jewelry when you leave the country via the Planet Tax Free system.
You’ll need:
- Purchase above AED 250
- A store with Tax Free affiliation
- A valid passport and receipt
- Refund request at the airport (before immigration)
📖 Read full process:
Final Advice
If your goal is Investment-grade gold is often exempt from VAT under certain conditions., always ask for:
- 24K gold
- 999.9 purity
- Proper invoice from a VAT-registered dealer
If you want beautiful jewelry — great! Just remember the 5% VAT adds to your cost (unless refunded or exported).
Knowing the tax classification helps you:
- Avoid overpaying
- Claim refunds properly
- Choose the right seller
Dubai is tax-friendly — but only if you know the rules.
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