The Cabinet Resolution No. (25) of 2018 Concerning Application of VAT for Gold and Diamond Among Registered Dealers in the State (tax law)

Article (1)  
Definitions  
In application of provisions of this Resolution, the following words and phrases shall 
have the meanings assigned to th em, unless the context indicates otherwise:  
Authority  : The Federal Tax Authority.  
Tax  : Value Added Tax (VAT).  
Taxable Person  : Any natural or legal person that is registered or is 
supposed to be registered for tax purposes 
subject to Federal Decree -law No. (8) of 2017 . 
Tax Registration  : A registration procedure taken by the taxable 
person or his legal representative for tax purposes 
of the Authority . 
Items  : Gold, diamond and any of its basic products of 
gold and diamond . Cabinet Resolution of 20 18 Concerning the Application of VAT for Gold and Diamond Among 
Registered Dealers in the State  2 
 Registered  : The taxable who acquired a tax registration 
number and is licensed by the competent 
governmental authority to practice any business 
relevant to the items . 
Supplier  : The registered who supplies items in the State . 
Receiver  : The person for whom the items are supplied . 
Tax  : The tax that is calculated and imposed subject to 
Federal Decree -law No. (8) of 2017 .

Article (2)  
1. When a supplier supplies the items to a receiver that is registered in the State, and 
the purpose of the receiver is to resell the items or to reuse it to produce or 
manufacture any of these items, the following rules shall apply:  
a. A supplier shall not be responsible for calculating the tax relevant to items 
supply and shall not record it in its tax return if the registered receiver 
recognises in writing the following:  
1. Acquiring those items is in order to resell, reuse it in producing or 
manufacturing any of such items . 
2. It is registered on the date of supply.  
3. The receiver shall calculate the tax on the value of  the items supplied.  
b. The receiver of the items shall calculate the tax on the value of the items 
supplied and shall be liable for all tax obligations caused by that supply and the 
calculation of the due tax.  
2. Provisions stated in clause (1) of this article shall not be applicable in any of the 
following cases : 
a. If the supplier knows or is assumed to know that the receiver is not registered 
on the date of supply . 
b. If the supplier did not confirm that the receiver is registered at the Authority 
pursuant to approved channels and details provided in the tax return . Cabinet Resolution of 20 18 Concerning the Application of VAT for Gold and Diamond Among 
Registered Dealers in the State  3 
 c. If the taxable supply is taxed for a zero -percentage  subject to clause (1) or (8) 
of article (45) of the Federal Decree -Law No. (8) of 2017.  
3. If the supplier knows  or is assumed to know that the rece iver is not registered for 
due tax purposes and associated penalties relevant to supply.

Article (3)  
Issu ing the Executive Resolutions  
The Minister of Finance shall issue the necessary Resolutions to implement the 
provisions of this decision.

Article (4)  
Enforcement  and Publication  
This Resolution shall come into force as of 1/6/2018 and shall be published in the 
Official Gazette.  
 
 
 
 
 
 
 
 
Mohammed bin Rashid Al Maktoum  
Prime Minister  
 
Issued by us:  
On: 6 Ramadan 1439 A .H. 
Corresponding to: 22 May 2018  AD