Expanding the application of the “reverse charge” mechanism to include gold and diamonds

The Ministry of Finance announced the issuance of Cabinet Resolution No. (127) of 2024 regarding the application of the reverse charge mechanism on precious metals and gemstones among those registered in the country for the purposes of value-added tax. The new decision cancels the previous Cabinet Resolution No. (25) of 2018 regarding the mechanism for applying value-added tax on gold and diamonds among those registered in the country.
The Ministry explained that the scope of application of the reverse calculation mechanism has been expanded to include precious metals (gold, silver, palladium, and platinum) and precious stones (natural and manufactured diamonds, pearls, rubies, sapphires, and emeralds), in addition to jewelry made from any of the precious metals or gemstones in which the value of the precious metals or stones is… The cream is higher than the value of the other ingredients, provided that the conditions stipulated in Cabinet Resolution No. (127) of 2024 are met, which will contribute to achieving great benefits for the sector. Trade in precious metals and gemstones in the country, as the supplier registered in the value-added tax will not be responsible for imposing and collecting the value-added tax on supplies of goods covered by the decision to customers registered in the value-added tax if the conditions stipulated in the decision of the Council of Ministers are met, and the registered customer will be In value-added tax, he is responsible for calculating the tax on his purchases of goods covered by the decision and disclosing it in his tax return.
The Ministry stressed that the new decision is a pivotal step that reflects the government’s continued commitment to supporting the precious metals and gemstones trade sector in the country.