The UAE has long been a hub for global gold trading, renowned for its tax-friendly environment and strategic location. One of the most attractive factors for investors is 0% VAT on investment-grade gold, an important factor driving both local and international demand.
Understanding 0% VAT on Investment-Grade Gold
Presented simultaneously with the VAT in the UAE since 2018, investment-grade gold, which includes at least 99% purity in gold bars or coins, qualifies for zero-rated VAT.
This implies the following:
1. The VAT amount for purchasing qualifying gold products does not accrue on the investor’s part.
2. Businesses may continue recovering input tax credits relating to that expense.
Other forms of jewellery and non-investment-grade gold less than 99% are subjected to a normal VAT of 5%.
Why this matters for investors
1. Cost Efficiency: The removal of VAT makes gold bars and coins more affordable, offering investors immediate savings compared to markets where such taxes apply.
2. Safe Haven Asset: Gold is a historically dependable asset during economic uncertainty. This 0% VAT in the UAE will ensure better margins for short-term traders as well as long-term holders.
3. Global Trading Hub: With cities like Dubai being considered the world’s leading gold markets, investors have easy access to internationally certified gold, competitive pricing, and trusted dealers.
Investment Opportunities in Dubai
Dubai has a wide range of gold dealers, exchanges, and refineries offering tax-free gold. For large-scale investors, the emirate’s designated free zones further enhance benefits by facilitating seamless import/export processes.
Conclusion
The UAE’s 0% VAT on investment-grade gold not only strengthens its position as a global gold trading hub but, at the same time, makes it an attractive opportunity for investors seeking to maximize their returns. With transparent regulations, quality assurance, and a thriving market, the UAE remains an investor’s goldmine.
By taking advantage of this policy, investors can diversify their portfolios and secure a financial hedge, especially in uncertain global markets.
By Best Gold. Published on 16th December 2024