Gold Tax in the UAE (2025): VAT on Jewelry vs Investment Gold, Tourist Refunds

Dubai is known worldwide as a hub for gold trading, jewelry shopping, and investment. From the bustling Gold Souk in Deira to luxury boutiques in Dubai Mall, buying gold is part of the city’s culture and tourism appeal.  

But if you’re planning to shop or invest in gold in 2025, one question comes up immediately: how does tax apply to gold in the UAE?

Here, we'll cut through all you need to know about VAT on gold jewelry and investment gold, how the tourist refund works in Dubai airport, and what it all means for casual buyers and serious investors.  

With more than 10 years of providing advice to clients on tax and compliance in the UAE, we will tell you what you need to know, based on experience, real-world examples, and tips that you would not typically find in the small print.

By the end, you’ll know how much VAT to expect, when gold can be VAT-free, and how to claim VAT refund on gold at Dubai airport without any last-minute stress.

Table of Contents

• VAT Basics for Gold in the UAE

• Does jewelry have VAT in the UAE in 2025?

• VAT on Investment Gold in the UAE (99% Purity)

• Tourist VAT Refunds: Receive VAT Refund on Gold at Dubai Airport

• Business Rules and Reverse Charge Mechanism

• Importing, Exporting, and Transporting Gold Across Borders

• Practical Examples: Jewelry vs Investment Gold Costs

• How to Shop Smart for Gold in Dubai

• FAQs

VAT Basics for Gold in the UAE

The UAE introduced a 5% Value Added Tax (VAT) in 2018, and since then, there have been some special rules for gold. While the majority of countries exclude gold from VAT, the UAE wanted to keep its gold trade competitiveness intact while staying in line with international norms.

Here's the summary of how VAT is levied in the UAE:

• Jewelry: Generally taxed at 5% VAT.

• Investment gold: May be zero-rated if it meets strict conditions.

• Tourist purchases: VAT is refundable under the official scheme if bought from an authorized retailer.

This might sound simple, but the details matter. Let’s go deeper into the two main categories: jewelry and investment gold.

Does jewelry have VAT in the UAE in 2025?

The straightforward answer is yes. If you’re buying jewelry in 2025, expect to pay 5% VAT on the total invoice amount.

This does not just cover the weight of the gold itself, it covers making charges (the design and labor costs). So, if you buy a necklace for AED 10,000, where AED 8,500 is the gold value and AED 1,500 is the making charges, VAT is on the whole AED 10,000. So, there is an extra AED 500 at the till.

• Expert insight: Many first-time buyers are caught off guard by how much making charges impact the final bill. We’ve seen clients compare two pieces of identical weight but very different designs, only to realize the more intricate one attracted much higher VAT simply because the making charges were higher. If you’re shopping for investment purposes, keep designs simple to reduce costs.

Key takeaway: The UAE still charges jewelry purchases at standard 5% VAT as of 2025, and yes, jewelry certainly does come with VAT in the UAE.

VAT on Investment Gold in the UAE (99% Purity)

Investment gold is not equally treated. The UAE applies a zero-rating (basically 0% VAT) if the gold meets the following:  

• Purity level of at least 99%: Generally gold bars or coins.

• Tradable form: Accepted in international bullion markets.

• Released by one VAT-enterprise to another VAT-enterprise.

So, when buying 1-kilogram units of 24-karat gold, and you are a trader or a licensed enterprise, there is no need to remit VAT on the transaction.

Real-life illustration: We advised a small Dubai bullion trading firm last year. Their VAT zero-rating of 99.9% purity bars from a supplier was applicable, but they needed to have proper tax invoices and supplier TRN numbers to support their claim. Without proper records, they could have been charged the 5% VAT.

For individual buyers, if you’re walking into a store to buy gold bars as a personal investment, you’ll usually still pay VAT upfront, unless the dealer structures it correctly. It’s critical to confirm whether the transaction qualifies as “investment gold” and if the seller is VAT-certified.

Key takeaway: VAT on investment gold in UAE 99% purity can be zero-rated, but only under specific conditions. Always double-check invoices and documentation.

Tourist VAT Refunds: Receive VAT Refund on Gold at Dubai Airport

Tourists in Dubai can claim VAT refund on purchases, including gold jewelry, under the Tax Refund for Tourists Scheme.

How it works in practice:

Where to shop: Shop only from retailers in the official VAT refund program. The stores will display the "Tax Refund for Tourists" logo.

Minimum spending: AED 250 per invoice.

What you get back: Around 85% of the VAT amount minus admin fees.

How to claim:

1. In the store, request a VAT refund voucher and present your passport.  

2. At the Dubai airport, visit VAT refund kiosks before check-in.

3. Present your purchase, receipt, and passport. The machines scan them electronically.

4. Choose to refund by credit card or cash (with limitations).

Example: If you buy AED 20,000 worth of gold jewelry, your paid VAT is AED 1,000. At the airport, after deducting fees, you'd get reimbursed about AED 850.

• Insider tip: Don't pack your gold in checked luggage before validation. Airport officials may need to examine the goods in person. I've had customers who wound up unpacking in a panic because they'd already checked their baggage.

Key takeaway: Travels to the Dubai airport can make tourists recover VAT on gold quite easily, subject to purchases being made from authorized dealers and the process being followed carefully.

Business Rules and Reverse Charge Mechanism

From 2025, there is a reverse charge process on gold and diamond transactions between VAT-certified businesses. That is, the purchaser, rather than the vendor, levies the VAT in his return.

Why it matters:
For companies: Improves cash flow since no VAT is payable upfront.

For traders: Reduces the threat of fraudulent claims for refund.

If you are a company dealing in gold, get your tax personnel to redesign invoicing and accounting systems to handle reverse charges correctly. Errors here will incur penalties.

Importing, Exporting, and Transporting Gold Across Borders

Tourists often wonder: "What happens if I buy gold in Dubai and take it home?"

Personal consumption: Tourists from most nations are allowed to bring small amounts of gold jewelry duty-free, although conditions vary.

Commercial exportation: For gold bar or bulk exportation, customs declarations and supporting invoices will be necessary.

UAE export laws: VAT zero-rating applies if the gold is exported physically with proof.

• Tip: Always check your home country’s import allowances. We’ve had clients who saved money in Dubai but ended up paying high duties when bringing gold into India or Europe.

Practical Examples: Jewelry vs Investment Gold Costs

Let’s break down the difference with numbers:

• Gold Necklace (AED 15,000 value + AED 2,000 making charges = AED 17,000)
  VAT @5% = AED 850
  Refund for tourists ~ AED 722.50
  Net extra cost (after refund) = AED 127.50

• Investment Gold Bar (AED 50,000, 99.9% purity, marketable form)
  If conditions met: Zero-rated = No VAT
  If bought as a consumer: VAT @5% = AED 2,500 (usually not refundable to residents)  

• Observation: Tourists buying ornaments can reclaim most of the VAT, but serious investors employ 99%+ purity bars for tax advantages.

How to Shop Smart for Gold in Dubai

Dubai will continue to be a draw for buyers of gold in 2025, but knowing the tax regulations is the distinction between a pleasant, lucrative purchase and a costly error.

Jewelry: Always charged with VAT (5%), but visitors can reclaim at Dubai airport.

Investment gold (99% purity): Could be zero-rated, but only with the correct conditions.

Tourists must organize their purchases, retain receipts, and check their refund prior to leaving.

If you’re serious about buying gold in the UAE—whether as an investor or a visitor—work with retailers who understand VAT compliance. And if you’re a business, make sure your accounting team is ready for the reverse charge rules.

Thinking of buying gold in Dubai? Before you walk into the souk or a luxury boutique, know about VAT implications. Desire one-on-one advice regarding how VAT affects your gold purchases or exports?  

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬!

FAQs

1. Can I receive a VAT refund on gold if I am an UAE resident?

No, VAT refund is only provided to tourists in the official scheme. Residents do not get refunds for spending on gold.

2. Is all 24K gold automatically VAT-free in Dubai?

Not always. Even 24K (99.9%) gold is liable to VAT if it's being sold to an end-user or doesn't fall under the definition of "investment gold".

3. What VAT refund can I receive on gold at Dubai airport?

You’ll receive about 85% of the VAT paid, as the system deducts admin fees. For example, on AED 1,000 VAT, you’d get around AED 850 back.