Experts unsure how VAT will apply to jewellery sales
It’s still unclear how VAT will apply to the purchase of jewellery like gold in the UAE.
That’s according to industry experts, who say they’re not sure whether jewellery itself will be taxed or the production cost of it.
Since ornaments do not come under the ‘basic goods’ category, the Ministry of Finance has said that jewellery will invite a 5 per cent value added tax from the start of next year.
Jeffery Rhodes, Founder and Managing Consultant of Rhodes Precious Metals Consultancy, explains how items like gold will be taxed.