UAE amends the VAT treatment for labour services when supplying gold and diamonds to registrants in the State - GulfToday

UAE amends the VAT treatment for labour services when supplying gold and diamonds to registrants in the State

  • 06 Dec 2022
Gold

Picture used for illustrative purposes.

Gulf Today, Staff Reporter

Pursuant to a resolution issued by the Cabinet, the Ministry of Finance today announced the amendment of the VAT treatment on workmanship services when supplying gold and diamonds to registrants in the State.

According to the resolution, there will be a temporary replacement for the definition of “goods” contained in Article (1) of Cabinet Decision No. (25) of 2018 on the Mechanism of Applying Value Added Tax on Gold and Diamonds to registrants in the State to be “gold, diamonds and any products whose main component is gold or diamonds, which may include labour services directly related to the supply of these commodities”.

This amendment will be applied for the period from June 1, 2018 to December 31, 2022, noting that the term provided in the aforementioned Cabinet Decision No. (25) of 2018 (goods) will be re-applied starting from January 1, 2023. The Federal Tax Authority will further clarify the amendments to taxpayers.

 

 

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