In the shimmering landscape of the United Arab Emirates (UAE), gold isn’t just a symbol of wealth and prosperity; it’s a significant part of the economy. However, navigating the tax implications of trading gold in the UAE can feel like finding a labyrinth. As of 2024, there have been pivotal updates and exemptions regarding the Gold Tax in UAE that residents and international investors must be aware of. This article aims to illuminate the path, ensuring you have the knowledge to make informed decisions.

Understanding VAT in the UAE


Image Source

If you’re curious about how gold is taxed, starting with the basics of the Value-Added Tax (VAT) in the UAE is helpful. VAT is like a sales tax that’s added to the price of things we buy or services we use. It’s part of the price at every step of selling something, from making it to buying it in a store. Since January 2018, the UAE has had a 5% VAT on most items and services you purchase. But, there are some exceptions, especially to support certain areas like gold trading. Some things don’t get this tax, or they’re taxed differently to help encourage investing in those areas. So, understanding VAT is the first step before getting into the details of how gold buying and selling is taxed.

Gold Tax in UAE and VAT: The 2024 Update

The UAE government has recently made an exciting change for people who trade in gold, diamonds, and other precious metals. They’ve decided that these trades won’t have to pay the VAT (Value Added Tax) anymore. This is a big deal for traders and investors because it makes trading in these valuable items more attractive. 

The tax break is specifically for transactions between businesses registered in the UAE. This move is part of a bigger plan to make the UAE a world-leading centre for buying and selling gold and jewellery. By removing VAT, the UAE is making it easier and more profitable for businesses to trade these precious items. This could attract more traders to the country and boost the economy. It’s a smart way to encourage more global trade in the UAE.

What are the Benefits?

For those just starting to navigate the world of gold trading and investments in the UAE, the exemption of VAT (Value Added Tax) is a game-changer. Here’s how different groups benefit from this new setup, making the process simpler and more appealing:

  • Gold traders and jewellers:
    • No longer need to worry about the extra costs due to VAT.
    • This change makes running their businesses easier and encourages more gold transactions within the UAE market.
  • Investors:
    • Can enjoy clearer pricing without the complications of tax.
    • Gold becomes a more enticing option for investment, thanks to straightforward pricing.
  • Consumers:
    • The overall effect is positive and may not see an immediate price drop.
    • The market becomes more competitive, potentially increasing prices for those buying gold.

This VAT exemption means that everyone, from business owners to individual buyers, can enjoy a more transparent and cost-effective experience when dealing with gold. Whether you’re looking to expand your business, invest, or simply purchase gold, this change paves the way for more opportunities and fewer hurdles.

Key Points to Remember

Key Points to Remember

Image Source

  • Eligibility for VAT exemption: Not all gold transactions are exempt from VAT. The exemption specifically applies to 99% or more pure gold or platinum, 99% or more pure silver, and investments in gold coins, bars, or bullion that meet the necessary purity requirements.
  • Documentation and compliance: Businesses must maintain meticulous records of all transactions to qualify for VAT exemption. This includes proof of eligibility, transaction records, and compliance with the UAE’s tax regulations.
  • Impact on imports and exports: The VAT exemption also extends to the import and export of eligible gold, silver, and platinum, further facilitating international trade.

Navigating the Market

Understanding the nuances of the UAE’s gold tax exemptions is crucial for anyone involved in the gold market. Here are some strategies to navigate this landscape effectively:

  1. Stay informed: Tax laws and regulations can evolve. Regularly consult official sources like the UAE Cabinet and tax advisors to stay updated on any changes or updates.
  2. Ensure compliance: Adherence to the eligibility criteria and documentation requirements is non-negotiable. Ensure your business practices align with the regulations to benefit from VAT exemptions.
  3. Market dynamics: The VAT exemption could influence gold prices and demand. Monitor market trends to make informed buying or selling decisions.


The UAE’s decision to exempt gold, diamonds, and precious metals from VAT in 2024 is a landmark move, poised to reinforce the nation’s status as a leading gold trading hub. Whether you’re a seasoned investor, a business in the gold trade, or a consumer with an eye for jewellery, understanding these tax exemptions is key to navigating the market confidently and profitably.

Remember, while the path through the UAE gold tax landscape may seem daunting, equipped with the right knowledge and strategies, you can easily navigate it. Stay informed, comply with the regulations, and consider the broader market dynamics to maximise your gold trading endeavours in the UAE.

About Author

Rizalie Gumalog

About Author

Rizalie Gumalog is a digital storyteller known for her eclectic writing styles that captivate audiences. With her almost 3 years of experience, she crafts engaging articles that build meaningful connections between brands and their audience. Drawing inspiration from nature and music, Riza is committed to creating enriching experiences and is always ready for new digital explorations.