Operating a gold business in the United Arab Emirates requires strict tax compliance due to the sector’s status as a global hub for precious metals. The Federal Tax Authority (FTA) monitors these operations closely, enforcing mandatory reporting for every gram of gold and dirham earned. Depending on business size and classification, dealers must file tax returns either monthly or quarterly, a requirement clearly outlined in each firm’s Tax Registration Certificate. With the 2026 updates to the Tax Procedures Law, including a strict five-year limit on claiming VAT credits and the expansion of the Reverse Charge Mechanism to include a wider range of precious stones and metals, staying ahead of deadlines is more critical than ever to avoid heavy fines and ensure legal records match government standards perfectly.
Mandatory Filing Schedules
The general rule for tax filing is quite simple. You must submit your return by the twenty-eighth day. This date follows the end of your specific tax period. For example, a period ending in March requires filing by April twenty-eighth. If that day falls on a holiday, the deadline moves. It moves to the next working day in the Emirates.
The Federal Tax Authority expects both the return and payment together. You cannot file the papers and pay the money later. Late payments trigger immediate penalties of two percent.
VAT Obligations for Gold Dealers
Every registered dealer has a duty to keep perfect records. You must document all sales and purchases of precious metals. The law requires you to hold these records for five years. These papers must show the purity and weight of the gold. VAT obligations for Gold dealers include verifying the status of your buyers.
If you sell to another registered business, the rules change. You may not need to collect tax at the point of sale. This is part of the reverse charge mechanism system. However, you must still report these deals on your return.
| Requirement | Description |
| Registration | Mandatory if revenue exceeds 375,000 dirhams |
| Record Keeping | Maintain all invoices for at least five years |
| Filing Frequency | Monthly or quarterly, based on your turnover |
| Payment | Must be cleared by the 28th of the month |
Standard Rates and VAT on Gold in the UAE
The standard rate for tax in the Emirates is five percent. This rate applies to most retail sales of jewelry. When a customer buys a gold necklace, they pay this tax. The dealer collects the money and holds it for the state. VAT on gold in the UAE covers the full value of the item. This includes the cost of the metal and the labor fees.
Dealers must separate these costs on their tax invoices. One line shows the price of the raw gold. Another line shows the making charges for the design. Clear billing helps the tax authority verify your tax returns. It also helps your customers understand what they are paying for.
When is VAT on gold in the UAE removed?
Many traders ask if the tax is ever fully gone. It is important to know when VAT on gold in the UAE is removed for deals. The tax is zero-rated for investment-grade precious metals only. This means the gold must have a purity of ninety-nine percent. It must also be in a form traded on global markets.
| Gold Type | Tax Treatment |
| Investment Bullion | Zero-rated at 0 percent |
| Gold Jewelry | Standard Rated at 5 percent |
| Raw Gold for Industry | Reverse Charge may apply |
This removal of tax helps the UAE stay competitive globally. It encourages investors to buy large quantities of bullion here. However, jewelry and lower-purity items do not get this benefit.
Special Rules for VAT on 22K gold in the UAE
Most jewelry sold in the local markets is twenty-two karat. Therefore, VAT on 22K gold in the UAE is always five percent. Dealers must apply this tax to the total invoice amount. This includes the metal value and any additional crafting fees.
Some dealers try to apply the reverse charge to retail 22K sales. The reverse charge only applies to business-to-business deals. If a regular tourist buys a ring, they must pay VAT. The dealer is responsible for reporting this as output tax. We provide training for your staff on these specific karat rules. Accurate reporting protects your trade license in the long run.
Why Professional Tax Services Matter
Navigating the tax laws in the Emirates is a complex task. The rules for precious metals are more detailed than other sectors. CBM Consultants specializes in helping gold dealers with their tax returns. We provide a full suite of services tailored to your needs.
- We manage your monthly or quarterly VAT filing.
- Our team reviews your purchase and sales ledgers.
- We help you apply for tax refunds from the state.
- We represent your business during official tax audits.
Conclusion
Filing your tax returns on time is not optional for dealers. It is a fundamental part of doing business in the UAE. You must stay aware of the 28th day deadline. You must also understand the difference between bullion and jewelry tax. Using the right keywords, like Gold Dealers Tax Returns in the UAE, helps you find info. However, expert guidance is the only way to stay truly safe.
