UAE, 14 January, 2025 : The Ministry of Finance has issued Cabinet Decision No. (127) of 2024, extending the Reverse Charge Mechanism (RCM) to include the supply of precious metals and stones among VAT-registered businesses in the UAE. This replaces Cabinet Decision No. (25) of 2018, which previously applied only to gold and diamonds.
Under the new rules, VAT-registered suppliers in this sector will no longer charge VAT on business-to-business transactions. Instead, buyers will account for VAT on both purchases and sales in their VAT returns. This change simplifies compliance and enhances cash flow for businesses, reflecting the government’s commitment to boosting the sector’s competitiveness.
The decision significantly broadens the scope of the RCM, supporting the growth of the precious metals and stones industry in the UAE. The Ministry of Finance emphasized its dedication to creating a robust regulatory framework aligned with international best practices.
Source : www.mof.gov.ae
