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FTA released a new Public Clarification on Gold Making Charges
Dubai June 29, 2022:
The Federal Tax Authority (FTA) has recently released a Public Clarification – VATP029 on Gold Making Charges, iterating that the suppliers of the gold jewellery are required to pay VAT on the making charges component by charging the same in the invoice, which would not be covered under the ‘special reverse charge mechanism’.
This Public Clarification provides detailed guidance on the VAT legislation application pertaining to making charges received by gold jewelers and further explains several instances where the making charges are taxable under VAT or not.