The UAE has changed VAT rules for gold and diamond suppliers, the Ministry of Finance announced on Tuesday.
The amendment comes as part of a resolution issued by the cabinet on workmanship services when supplying gold and diamonds between registrants.
According to the resolution, there will be a temporary replacement for the definition of “goods” contained in Article (1) of Cabinet Decision No. (25) of 2018 on the Mechanism of Applying Value Added Tax on Gold and Diamonds between Registrants in the State to be “gold, diamonds and any products whose main component is gold or diamonds, which may include workmanship services directly related to the supply of these commodities”, the Ministry of Finance said in a statement.
The latest changes will come into effect starting January 1, 2023.
However, it will also be applied for the period from June 1, 2018 to December 31, 2022, the Ministry said adding that the Federal Tax Authority (FTA) will “further clarify the amendments to taxpayers.”
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