United Arab Emirates MOF Announces Expansion of VAT Reverse Charge Mechanism on Precious Metals, Gems

The Emirati Ministry of Finance Jan. 13 announced the issuance of UAE Cabinet Decision No. 127 of 2024, which expands the application of the reverse charge mechanism to include precious metals and gems for VAT-registered businesses. The decision includes: 1) that suppliers in the precious metals and gems sector will no longer charge VAT on business-to-business transactions or remit the tax to the Federal Tax Authority; and 2) that buyers must account for VAT on the sale and purchase of these items on their VAT returns, provided that both the buyer and seller are registered for VAT in the UAE. ...