The Zakat, Tax and Customs Authority clarified that gold is subject to zero-rate value-added tax if its purity level is 99% and is tradable in the global bullion market only.
The authority indicated that if the gold purity level is less than 99%, it is subject to value-added tax, noting that gold works are subject to a value-added tax of 15% when sold by a person registered in the value-added tax system.
The Authority’s clarification came in its response to a query from a person regarding the extent to which value-added tax is applied to the purchase of used gold.
