VAT Reverse Charge Mechanism: Precious Metals & Stones

🗓️ Effective from: February 25, 2025 📘 Cabinet Decision No. 127 of 2024

💡 What's Changing?

Under the new law, VAT-registered buyers must now account for VAT on certain transactions involving:

• 🟡 Gold

• ⚪ Silver

• 💎 Diamonds

• 🛠️ Semi-processed precious metals and stones

This applies only to transactions between VAT-registered entities and under specified conditions.

⚠️ Why It Matters

This change aims to:

• 🚫 Prevent VAT fraud

• ✅ Improve transparency in high-value trades

• 🔄 Shift VAT compliance from seller to buyer

Failure to comply could result in:

• ❌ Penalties from FTA

• 📉 Disrupted supply chain

• 🧾 Misreported VAT returns

📋 Implications for Your Business

You may now need to:

• ✅ Update internal accounting and invoicing processes

• 📑 Ensure compliant documentation

• 🔍 Review all B2B transactions involving precious items

• 👨‍💼 Seek professional guidance for accurate compliance

🤝 How Aeon Can Help

Let our experts handle the complexity:

• 🔍 Transaction analysis & VAT treatment

• 🧾 VAT invoice reviews & compliance audits

• 🧠 Staff training & awareness

• 📊 RCM-compliant VAT return filing

📌 Disclaimer

This article is intended for general informational purposes only and does not constitute legal, tax, or financial advice. While every effort has been made to ensure the accuracy of the information provided, Aeon Accounting and Auditing assumes no responsibility for any errors or omissions. Readers are advised to consult with qualified professionals before making any decisions or taking actions based on this content. Regulations are subject to change, and specific application may vary depending on individual circumstances.

📞 Talk to Us Today

Aeon Accounting and Auditing – Your trusted UAE tax compliance partner. 📧 naveed@aeon-global.com | 📞 +971 50 165 3764