The UAE Ministry of Finance made some changes to how taxes work for gold and diamond sellers who are registered. They did this with a new rule in 2024 called Cabinet Decision No. (127). Basically the change means that now when these sellers sell to registered buyers the buyer is now responsible for the tax part instead of the seller.
This change is called a reverse charge mechanism. It’s suppose to make things easier for the sellers. They don’t have to worry about collecting tax anymore they just sell. The buyers on the other hand now need to calculate the tax and report it themselves. This is a way to follow what other countries are doing and also hopes to make sure the taxes get paid correctly.
The overall goal of these new tax rules is to help the gold and diamond business grow in the UAE. By changing the tax process it hopes to be more modern and simple for businesses. It makes things easier for sellers and by putting tax responsiblity on buyers it’s meant to help the economy and make everything run smoother.