Gold Treasure in the United Arab Emirates: What Buyers, Traders, and Travelers Need to Know

Gold Market in the United Arab Emirates

The UAE’s reputation as a global hub for gold buyers, investors and jewellers has steadily grown in recent years.

But with VAT, customs regulations and international regulations playing an increasingly important role, it’s important to understand how gold is taxed in the UAE, whether you’re buying a necklace from the Deira gold market, importing gold bars for resale or bringing jewellery with you to Mumbai. Is there VAT on gold in the UAE? What is considered investment gold? Can tourists reclaim the tax on jewelry? And how much gold can you export from Dubai without paying a fine?

Here you will find everything you need to know about the gold tax in the United Arab Emirates in 2025, clearly explained with practical examples and the latest free trade rules.

VAT On Gold In The UAE: What Is Taxable And What Is Not?

The 5% Rule And When It Applies

Gold jewelry and non-investment gold, including most commercially available gold, are subject to VAT at 5%. It includes necklaces, bracelets, earrings, pendants and other jewelry made of 18, 21 or 22 karat gold.

If you are a resident of the United Arab Emirates and you are purchasing jewelry, you will pay 5% VAT on the total invoice amount.

This VAT applies to the weight of the gold, production costs and any design or service fees for the item.

Explanation Of Zero-Interest Investment Gold

Gold that meets the definition of a precious metal as an investment in the UAE is subject to a zero VAT rate.

It means that no VAT is charged on sales, but companies can still deduct import tax on related costs such as transport, storage and security.

 

To be classified as investment grade, gold must meet two criteria:

• The gold must have a purity of 99% or more, which usually means 24 karat.
• It must be in a tradable form, such as gold bars or coins.

For example, if you purchase a 1-ounce 24-karat gold bar from a certified retailer, no VAT needs to be added to the invoice as long as the item is properly classified and certified.

The supplier must clearly state that the item is tax-exempt and provide appropriate documentation.

This measure was introduced to stabilise the gold trade following the introduction of VAT in 2018, when the sector experienced a significant decline in sales.

Reports from the time indicated a drop of up to 40%. The exemption for investment gold was part of a broader strategy to maintain the UAE’s competitiveness as a gold trading hub.

Practical Examples Of VAT On Various Gold Purchases

Scenario: Is VAT charged? Details

Tourist buys 22-karat necklace. Yes, 5% VAT is charged at the time of sale but refunded upon departure.

Investors buy 24-karat gold bars. NO Zero classification if purity is 99%+ and form is merchantable.

Neighbor buys a ring. Yes, 5% The standard VAT rate is applied to the entire invoice.

B2B sales of gold bars. Reverse taxation. No VAT is added; the buyer declares VAT in their tax return.

VAT Refund For Gold: Who Can Apply And How?
Refund System For Tourists

Tourists who purchase gold jewelry in the UAE can reclaim most of the VAT they paid through the Tourist Tax Refund System, a fully electronic system administered in collaboration with the Federal Revenue Service.

How to use the chart:

• You must buy from a participating store. It includes most gold jewelers in the UAE. Always check before you buy.
• To be eligible for a transaction refund, your minimum purchase amount must be 250 AED.
• Request a tax-free receipt at checkout and show your passport. The retailer will issue you a marked receipt via the electronic system.
• At the airport, you must validate your purchase at a Planet Tax Free kiosk before checking in. The gold item must be in your carry-on luggage and ready for inspection.
• After validation, you can choose whether you want the money back in cash or deposited into your card.

The refund amount is 85% of the VAT paid, minus a processing fee of AED 4.80 per invoice. For example, if you paid AED 500 in VAT, you will receive approximately AED 425 back.

This process must be completed within 90 days of purchase, and you must take the gold with you abroad.

Worn jewelry is permitted, but must be removed upon departure.

VAT refund for companies

If you are a VAT-registered company in the UAE that trades or retails gold, you can reclaim the VAT through the normal input VAT deduction procedure.

It applies in the following scenarios:

• If you buy gold locally and pay 5% VAT, you can deduct this amount as input VAT on your VAT return.
• If you import gold from countries outside the UAE, import VAT may be charged. However, if it is investment gold, a zero rate of tax may apply. Alternatively, you can use reverse charge to offset the VAT without paying it in advance.
• You can also deduct VAT on related business expenses, such as security, transport or exhibition equipment.

If your import tax exceeds your export tax over a certain period, you can claim a refund from the FTA. It is particularly common for exporters and precious metals traders who mainly trade in duty-free goods.

Eligible for the reverse charge mechanism must continue to declare both import and export VAT in their tax returns. It ensures compliance without actually having to pay tax and reduces liquidity pressure on high-value gold transactions.|

Manufacturing Costs: What They Are And How They Affect PriceThe Two Main Pricing Models In Dubai

Manufacturing costs refer to labor or design costs associated with gold jewelry. These are calculated in addition to the base value of the gold and can vary significantly depending on the complexity of the item and the seller’s pricing model.

In Dubai, jewelers typically charge manufacturing fees in one of two ways:

• A fixed price per gram, for example, 10 to 20 AED per gram
• A percentage of the gold value, often between 6% and 14%

Some high-end designers may even charge more, especially for custom-made or intricate items. Prices are usually negotiable, especially at gold markets and smaller shops.

Calculate The Total Cost Of A Jewelry Purchase

Let’s look at an example that shows how production costs and VAT affect the final price of a gold chain:

• Weight: 50 grams 22 carat gold
• Gold price: 220 AED per gram
• Gold value : 50 g × 220 AED = 11,000 AED
• Production cost: 15 AED per gram = 750 AED
• Subtotal: 11,750 AED
• VAT at 5%: AED 587.50
• Total price: AED 12,337.50

As a tourist, you can get back approximately AED 425 of the VAT you paid. If you live in the region, this amount is non-refundable.

Doing Gold Trading in the UAE: Taxes and Permits

VAT Obligations For Jewelers And Precious Metal Dealers

Gold dealers and jewelers in the UAE are required to register for VAT if their annual taxable turnover exceeds AED 375,000. Upon registration, they are required to:

• Issue valid tax invoices that show gold value, costs and VAT separately
• Submit quarterly VAT returns to the federal tax authority.
• Apply the correct VAT treatment depending on the type of gold and the customer.
• Ensure full compliance with anti-money laundering (AML) regulations, including customer verification and reporting of suspicious transactions.

These rules apply to both onshore and offshore companies operating in free zones such as DMCC or Dubai Gold and Diamond Park.

Use Of Reverse Charge For B2B Gold Trading

Reverse charge VAT allows gold suppliers, under certain conditions, to omit VAT from the invoice when selling to another VAT-registered company. Instead, the buyer must declare the VAT on their tax return.

From February 2025, reverse charge will apply to a wider range of goods, including:

• Gold, silver, platinum and palladium in raw or processed form
• Jewelry where precious metal is the dominant component
• Cut and polished diamonds and some gemstones

How to apply reverse charge:

• Buyer must be VAT registered in the UAE.
• The supplier must obtain and retain a declaration from the buyer confirming that the purchase is for resale or manufacturing.
• Both parties must keep accurate records and verify each other’s TRN numbers.
  

If the customer does not submit the declaration or is not VAT registered, the supplier is obliged to calculate and pay the VAT in the usual way.

Compliance Risks And Fines

Failure to comply with these VAT obligations can result in heavy fines. These include:

• Fines starting from AED 10,000 for incorrect billing or failure to register
• Penalties for non-compliance with AML regulations
• Additional costs and interest on unpaid VAT

Gold traders should seek professional advice on VAT matters and keep detailed records of all purchases and sales, particularly if they use the reverse value system.

Importing And Exporting Gold In The United Arab Emirates: Tax Treatment And Declarations

Customs Duties And VAT On Gold Imports

The tax treatment of imported gold depends on the type and form of the product:

• Raw gold, bars and nuggets are exempt from import duties and may qualify for zero VAT if classified as investment grade.
• For finished jewelry, 5% import duty plus 5% VAT is usually charged on the CIF value (cost, insurance, freight).
• Companies that import gold for resale or production can use the reverse charge to pay VAT without having to pay in advance.

Traders in the free zone must also fulfill certain customs formalities if they wish to export gold outside the UAE.

VAT On Gold Exports

No VAT is levied on the export of gold provided the goods are physically transported outside the GCC countries and appropriate documentation is maintained. It includes:

• Commercial invoices and export customs declarations
• Proof of shipment or air waybills
• Customer details and VAT registration number (if applicable)

To maintain zero-duty status, companies must export goods within 90 days of the invoice date. Purchases by tourists are also permitted, provided the goods leave the country within the same period.

Transporting Gold Through Dubai: What Travelers Must Declare.

UAE Rules For Departure Or Arrival With Gold

There are no exit or import duties on personal gold from the UAE. However, travelers must declare valuables above a certain value:

• You must declare gold or cash worth more than AED 60,000 when entering or leaving the UAE. It applies to any combination of money, gold, jewelry or gemstones.
• Travelers are allowed to bring a maximum of 10 kilograms of gold for personal use without the need for a commercial license. It is an informal limit used by customs as a guideline.
• The Afseh system can be used for online pre-registration.

Travelers carrying reasonable amounts of personal jewelry are generally exempt from import duties; however, large or commercial quantities may be subject to inspection and taxation.

What Is Happening In Your Destination Country?

Each country has different rules for how much gold you can import and what import duties apply. Here is a brief overview:

Country Tax exemption Tax on surplus

India: 20 g (men), 40 g (women) jewelry -13.7% duties and taxes

Pakistan: Approximately 10 grams of jewelry. Any excess is subject to import duties.

UK USD: 530 exemption for non-EU goods. Import tax may apply to gold jewelry.

USA: No import duties on gold. Declaration requirements for gold worth over USD 10,000

EU Countries: approximately $500 deductible. Import duties and VAT vary between Member States.

Many countries also prohibit or restrict the import of gold bars and coins that are treated as currency or commodities. Always carry your receipts and proof of purchase with you and be prepared to declare gold if its value exceeds your local limit.

Make Sure You Apply The Correct Tax Rules For Gold

Gold remains one of the UAE’s most dynamic trading sectors, supported by transparent pricing, world-class infrastructure and a tax system that distinguishes between investment and consumer jewelry.

Whether you are a tourist shopping in the souks, a gold investor making valuable purchases, or a business that trades gold daily, proper tax treatment is crucial.

With appropriate documentation and compliance, you can take advantage of the UAE’s favorable gold climate without risking fines or delays.

Do you need help with VAT registration or a gold trading license in the UAE?

Contact the experts at G12. We can help you with free trade agreement compliance, reverse charge and establishing a fully legal and tax-compliant gold trading business in the UAE.

FAQs – Gold Tax & Trading in the UAE (2025)

Question 1. Is there VAT on gold in the UAE?
Yes, a 5% VAT applies to most gold jewelry and non-investment gold. However, investment-grade gold (99% purity, tradable form like bars or coins) is taxed at 0%.

Question 2. What is considered investment gold in the UAE?
Gold with at least 99% purity (24k) in tradable forms such as bars or coins. Jewelry, even if 24k, usually does not qualify as investment gold.

Question 3. Can tourists get a VAT refund on gold jewelry purchases?
Yes. Tourists can reclaim up to 85% of the VAT paid, provided they buy from a registered retailer, request a tax-free invoice, and validate the purchase at the airport before departure.

Question 4. How much VAT refund can tourists get on gold?
Tourists receive 85% of the VAT paid minus a processing fee of AED 4.80 per invoice.

Question 5. Do UAE residents get a VAT refund on gold jewelry?
No. VAT refunds are only available to tourists under the Tourist Tax Refund System.

Question 6. Is gold cheaper in Dubai than in other countries?
Generally yes, because Dubai’s gold prices are based on international live market rates, and only 5% VAT applies. Negotiable making charges also make Dubai gold attractive.

Question 7. What is the reverse charge mechanism for gold trading?
For B2B sales, the supplier may not charge VAT. Instead, the buyer declares and accounts for VAT in their return. This helps liquidity for high-value transactions.

Question 8. What are the penalties for incorrect VAT treatment in gold trading?
Fines start at AED 10,000 for errors like failure to register, incorrect invoicing, or not complying with AML (anti-money laundering) regulations.

Question 9. How much gold can travelers take from Dubai without paying duty?
Travelers must declare if carrying gold or cash worth more than AED 60,000. Informally, up to 10kg of personal-use gold is allowed without a commercial license.

Question 10. How much gold can I bring into India from Dubai?
Indian customs allow men to bring 20g and women 40g of gold jewelry duty-free. Any excess attracts ~13.7% customs duty plus other taxes.

Question 11. Can I import gold bars from Dubai to Pakistan?
Pakistan allows about 10g of jewelry duty-free. Gold bars and larger quantities of jewelry may attract import duties.

Question 12. Are gold imports into the USA from Dubai taxed?
No import duties are charged on gold, but amounts above USD 10,000 must be declared at customs.

Question 13. How are making charges applied on jewelry in Dubai?
They can be fixed (per gram, e.g., 10–20 AED) or percentage-based (6–14% of gold value). Charges are often negotiable in souks.

Question 14. Are gold bars in Dubai tax-free?
Yes, if they qualify as investment gold (99% purity, tradable form). VAT is 0%.

Question 15. Can worn jewelry be taken out of Dubai by tourists?
Yes, but it must be declared and removed at customs if required during VAT refund processing.

Question 16. Do free zones like DMCC offer gold trading licenses?
Yes. Free zones such as DMCC, Dubai Gold & Diamond Park, and JAFZA offer gold trading licenses with VAT and customs benefits.

Question 17. What documents are needed to export gold from Dubai?
Commercial invoice, export customs declaration, proof of shipment (air waybill), and customer details (with VAT TRN if applicable).

Question 18. Is there a limit on gold exports from the UAE?
No official maximum, but gold must be declared if valued above AED 60,000, and export rules of the destination country apply.

Question 19. Do jewelers in Dubai need VAT registration?
Yes, if annual taxable turnover exceeds AED 375,000. They must issue tax invoices, file VAT returns, and comply with AML laws.

Question 20. Is Dubai still the best place to buy gold in 2025?
Yes. Thanks to competitive pricing, zero VAT on investment gold, and a transparent refund system for tourists, Dubai remains one of the world’s top gold hubs.