Is VAT applicable on the supplies of gold and diamonds?
VAT is not applicable if the supply matches the following conditions:
- The buyer must be registered for VAT at the time of supply.
- The buyer must make the purchase with the intention to resell the supplies or to make products where the primary component is gold or diamonds.
- The buyer must declare in writing to the supplier that they are registered for VAT on the date of supply and that their intention is to resell the supplies or make products where the primary component is gold or diamonds.
- The buyer must state their intention to report taxes on these supplies in their tax returns.
If the supply is an export or an investment in precious metals (with 99% purity) then that supply is subject to 0% VAT and will not fall under this category.