United Arab Emirates Tax Agency Clarifies VAT Reverse Charge Mechanism for Precious Metals, Stones

The Emirati Federal Tax Authority April 30 issued Public Clarification No. VATP043, explaining the VAT reverse charge mechanism for precious metals and stones, effective Feb. 26. The clarification explains: 1) the expansion of the goods to which the domestic reverse charge mechanism applies to include specified precious metals other than gold, precious stones other than diamonds, and jewelry made therefrom; 2) the requirement for the recipient to be VAT-registered in the country, intend to resell or use the goods in manufacturing, and provide the supplier with a written declaration of these facts; 3) the requirement for suppliers to receive and ...