Cabinet Decision Cabinet Decision No. 25 of 2018 Cabinet

CD 25/2018 — VAT on gold and diamonds between registrants (repealed)

Cabinet Decision No. 25 of 2018 on the Mechanism of Applying Value Added Tax on Gold and Diamonds between Registrants in the State

Repealed Issued 22 May 2018 In force from 1 June 2018

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Replaced by CD 127/2024 — Reverse charge on gold, precious metals and precious stones from 26 February 2025 — read the current text →

Official Arabic title
قرار مجلس الوزراء رقم (25) لسنة 2018 في شأن آلية تطبيق ضريبة القيمة المضافة على الذهب والألماس بين المسجلين في الدولة
Document type
Cabinet Decision
Number
25
Issued by
Cabinet
Administered by
Federal Tax Authority
Issued
22 May 2018
In force from
1 June 2018
Applies to
VAT registrants licensed to deal in gold and diamonds that supplied or bought them for resale or manufacturing, until the repeal took effect on 26 February 2025.
Current position
Repealed by Cabinet Decision No. 127 of 2024 (Art. 4(1)), issued 16 December 2024, which takes effect 60 days after its publication in the Official Gazette (26 February 2025 per its cover). The later decision applies the reverse charge to a wider range of precious metals, precious stones and jewellery; it contains no carry-over clause for this decision.
Topics
VAT · Returns & payment
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Shifted the VAT on supplies of gold, diamonds and products mainly made of them, between licensed registrants, from the supplier to the recipient where the recipient bought them for resale or to make other such goods. The recipient had to declare in writing its purpose, its registration on the date of supply and that it would account for the VAT, and the supplier had to verify that registration. The mechanism did not apply to zero-rated supplies under Article 45(1) or (8) of the VAT Law, and a supplier that knew or should have known the recipient was unregistered was jointly and severally liable for the tax and penalties.

What it means in practice Professional insight

Who: gold and diamond traders and manufacturers reviewing supplies between 1 June 2018 and the repeal. What to check: the written declarations and registration checks held for each reverse-charged supply; supplies from 26 February 2025 follow Cabinet Decision No. 127 of 2024.

Key provisions

  • Art. 1 Goods: gold, diamonds and any products whose principal component is gold or diamonds. Registrant: a Taxable Person issued with a Tax Registration Number and licensed by the competent government entity to conduct any activity related to the Goods.
  • Art. 2(1) Where a Supplier supplies Goods to a Registrant Recipient in the State who intends to resell them or use them to produce or manufacture Goods, the Supplier does not calculate the Tax or include it in his Tax Return if the Recipient declares in writing that the Goods are acquired for resale or production, that he is registered on the date of supply, and that he will calculate the Tax; the Recipient calculates the Tax on the value of the Goods and bears all Tax obligations of the supply and the Due Tax.
  • Art. 2(2) Clause 1 does not apply where the Supplier knew or should have known that the Recipient was not a Registrant at the date of supply; where the Supplier did not verify the Recipient's registration with the Authority by the means it approves, according to the written declaration; or where the supply is zero-rated under Clause 1 or 8 of Article 45 of the VAT Law.
  • Art. 2(3) Where the Supplier knew or should have known that the Recipient was not registered at the date of supply, the Supplier and the Recipient are jointly and severally liable for the Due Tax and related penalties.
  • Arts. 3–4 The Minister of Finance issues the decisions required to implement it; it is implemented as of 1 June 2018 and published in the Official Gazette.
  • Repeal Repealed by Cabinet Decision No. 127 of 2024 (Art. 4(1)), which comes into effect 60 days after its publication in the Official Gazette (Art. 5); its cover gives 26 February 2025.

What changed

  1. 22 May 2018 Issued
  2. 1 June 2018 In force
  3. 26 February 2025 Replaced by CD 127/2024 — Reverse charge on gold, precious metals and precious stones: Repeals Cabinet Decision No. 25 of 2018 (Art. 4(1)); this decision applies 60 days after its publication in the Official Gazette (Art. 5; cover: effective from 26 February 2025).

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 23 August 2017 Federal Decree-Law FDL 8/2017 — VAT Law In force — amended
    1. 26 November 2017 Cabinet Decision CD 52/2017 — VAT Executive Regulation — Executive Regulation of this law In force — amended
      1. 24 July 2018 Cabinet Decision CD 41/2018 — Introducing the VAT refunds for tourists scheme — Made under Art. 68 In force
        1. 29 August 2018 FTA Decision FTA Decision 1/2018 — Retailer requirements for the VAT refunds for tourists scheme — Made under it In force
        2. 28 April 2019 FTA Decision FTA Decision 1/2019 — AED 7,000 cap on cash VAT refunds to tourists (repealed) — Made under it Repealed
        3. 26 May 2022 FTA Decision FTA Decision 4/2022 — One-year time limit for tourists to claim VAT refunds — Made under it In force
        4. 21 July 2022 FTA Decision FTA Decision 6/2022 — AED 35,000 cap on cash VAT refunds to tourists — Made under it In force
      2. 6 November 2018 FTA Decision FTA Decision 2/2018 — VAT refunds for tourists (consolidated 2026) — Made under Art. 68 In force — amended
      3. 17 December 2018 FTA Decision FTA Decision 4/2018 — No tax invoice for supplies through vending machines — Made under Art. 59(7) In force
      4. 26 May 2019 FTA Decision FTA Decision 7/2019 — Combined tax invoice/credit note and mailing addresses — Made under Arts. 59, 60 In force
      5. 22 February 2023 Ministerial Decision MD 26/2023 — When a supply counts as electronic commerce for VAT records — Made under Art. 72(5) In force
      6. 14 July 2026 Directive on Tax Transactions DTT 4/2026 — VAT on fees within life insurance contracts — Made under Art. 42 In force
      7. 1 September 2026 Cabinet Decision CD 149/2026 — VAT Regulation amendments — Amends Arts. 4, 29, 41, 52, 53, 54, 55, 57, 60 In force
      8. 9 September 2026 FTA Decision FTA Decision 17/2026 — Input tax on employee expenses — Made under Art. 53(1)(c) In force
    2. 28 December 2017 Cabinet Decision CD 55/2017 — Charities that may recover input tax (list as amended to Dec 2024) — Made under it In force — amended
    3. 28 December 2017 Cabinet Decision CD 56/2017 — Zero-rated medications and medical equipment — Made under it In force
    4. 28 December 2017 Cabinet Decision CD 59/2017 — Designated Zones for VAT (with the FTA list) — Made under it In force — amended
    5. 22 May 2018 Cabinet Decision CD 26/2018 — VAT refund on exhibition and conference services — Made under it In force
    6. 22 May 2018 Cabinet Decision CD 25/2018 — VAT on gold and diamonds between registrants (repealed) — Made under it Repealed
    7. 2 January 2020 Cabinet Decision CD 1/2020 — VAT refund for Expo 2020 Dubai official participants — Made under it In force
    8. 1 September 2020 Cabinet Decision CD 9/12 O of 2020 — Temporary zero rate on COVID-19 protective equipment — Made under it Spent
    9. 16 August 2022 Cabinet Decision CD 82/2022 — Refund of input tax on building and operating mosques — Made under it In force
      1. 29 October 2022 Ministerial Decision MD 162/2022 — Deadlines for mosque input tax refund requests — Made under it In force
    10. 25 August 2023 Cabinet Decision CD 91/2023 — Reverse charge on mobile phones, computers and tablets — Made under it In force
      1. 25 October 2023 Ministerial Decision MD 262/2023 — Which parts and pieces of electronic devices fall under the reverse charge — Made under it In force
    11. 1 November 2024 FTA Decision FTA Decision 8/2024 — Correcting VAT return errors that do not change the tax due — Made under it In force
    12. 16 December 2024 Cabinet Decision CD 127/2024 — Reverse charge on gold, precious metals and precious stones — Made under it In force
    13. 12 September 2025 Ministerial Decision MD 243/2025 — E-invoicing system — Made under e-invoicing provisions In force — amended (see E-Invoicing)
    14. 4 November 2025 Cabinet Decision CD 153/2025 — Reverse charge on metal scrap between registrants — Made under it In force
    15. 8 July 2026 Directive on Tax Transactions DTT 1/2026 — VAT on judicial expert services — Made under Art. 13 In force
    16. 8 July 2026 Directive on Tax Transactions DTT 2/2026 — VAT adjustments after leaving a Tax Group — Made under it In force
    17. 14 July 2026 Directive on Tax Transactions DTT 3/2026 — Converting digital-currency consideration to AED — Made under it In force
    18. 20 July 2026 Directive on Tax Transactions DTT 5/2026 — Valuing deemed supplies of services — Made under Art. 37 In force
    19. 22 July 2026 FTA Decision FTA Decision 13/2026 — Verifying suppliers before deducting input tax — Made under it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Related services: VAT Services · VAT Health Check

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.