- The Emirati Ministry of Finance announced a new Cabinet Decision on the application of the reverse charge mechanism to precious metals and stones.
- The decision applies VAT under the reverse charge mechanism to specified precious metals or stones, and to jewelry composed of them, when supplied to VAT-registered recipients in the country with the intent of resale or use in production.
- Recipients must provide a written declaration to the supplier stating their intent and registration with the Federal Tax Authority.
- The reverse charge mechanism does not apply if the supply is subject to a zero rate.
- The decision repeals a previous Cabinet Decision on the application of VAT on gold and diamonds.
- The decision takes effect 60 days from publication in the Official Gazette.
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.
