The Ministry of Finance (MoF) today announced the amendment of the VAT treatment on workmanship services when supplying gold and diamonds between 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 between Registrants in the State to be “gold, diamonds and any products whose main component is gold or diamonds, which may include workmanship 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.
REFERENCE: https://www.khaleejtimes.com/uae/uae-announces-vat-changes-in-gold-diamond-sector