The United Arab Emirates is globally recognized as one of the most cost-effective and transparent jurisdictions for acquiring physical precious metals. A primary driver for international investors is the UAE Federal Tax Authority (FTA) favorable VAT treatment on investment bullion.
The 0% Zero-Rated VAT Rule (FTA Executive Regulation)
Under Article 38 of UAE Federal Decree-Law No. 8 on Value Added Tax, physical precious metals qualify for 0% Zero-Rated VAT when they satisfy two concurrent statutory conditions:
- Minimum Purity Threshold: The metal must possess a purity level of 99% or higher (.990+ fineness).
- Tradeable Form: The bullion must be in a form tradeable in global precious metals markets (standard cast bars, minted ingots, or qualifying tradeable coins).
How VAT Applies to Different Bullion Categories in Dubai:
- 24K Gold Bars (999.9 & 999.0): 100% Zero-Rated (0% VAT).
- 24K Gold Minted Coins (999.9): 100% Zero-Rated (0% VAT).
- 999.0 Pure Silver Bars & 1 Oz Coins: 100% Zero-Rated (0% VAT).
- 22K Sovereign Coins (91.67% Purity): Because purity is below the 99% threshold, 22K coins are subject to standard 5% UAE VAT on the transaction value.
- Jewellery & Craftsmanship (Making Charges): Finished jewelry and retail making charges attract standard 5% VAT.
Documentation Required for Bullion Purchase in Dubai:
In full compliance with UAE Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations overseen by the Ministry of Economy, bullion transactions require valid identification (Emirates ID for UAE residents, or original Passport with entry stamp for international tourists and investors).