Hyderabad, Jan. 12 -- The United Arab Emirates (UAE) has announced new value-added tax (VAT) rules for registered gold and diamond dealers, aimed at boosting the sector's growth and aligning with global best practices.

The Ministry of Finance (MoF) has issued Cabinet Decision No. (127) of 2024, extending the reverse charge mechanism to businesses trading in precious metals and stones.

Under the reverse charge rules, suppliers are no longer required to charge or collect VAT from registered customers. Instead, buyers are now responsible for calculating and reporting VAT in their tax returns.

Reverse charge mechanism coverage

Precious metals: Gold, silver, palladium, and platinum

Precious stones: Diamonds (natural and manufactured), pea...