I trade gold or diamonds — how does VAT actually apply to my sales?

Cabinet Decision No. 127 of 2024 expanded the reverse charge mechanism to a wider list of precious metals and stones — gold, silver, palladium, and platinum, plus natural and manufactured diamonds, pearls, rubies, and emeralds, and jewellery where the metal or stone value exceeds the value of other components. This replaced the 2018 decision, which only covered gold and diamonds.

The mechanism itself is straightforward when both parties are VAT-registered: the seller does not charge VAT on the invoice, but must first obtain a written declaration from the buyer confirming their VAT registration and that the goods are being acquired for resale or manufacturing, not personal use. The buyer then self-accounts for the VAT in their own return, so no cash actually changes hands for the tax itself. If that written declaration is missing, or either party isn't registered, standard VAT rules apply instead. RASEEKH reviews your invoices and declarations before filing to make sure these conditions are properly met.