VAT Public Clarification No. VATP029 of 2022 Gold - Making Charge

NOT IN FORCE. This Public Clarification was abrogated by VAT Public Clarification No. VATP032 of 2022.

In brief

According to Cabinet Decision No. 25 of 2018, if the conditions of on a special reverse charge mechanism are met, VAT registrants supplying gold are not required to impose VAT on the supply of gold or gold products. VAT in respect of the gold is accounted for by the registered recipient through the special reverse charge.

However, if the supplier charges separate considerations for the gold and related making service, or reflects the price of these components separately, the supplier is required to impose VAT on the service component.

In detail

Special reverse charge mechanism 

A registered supplier supplying Gold Items defined under Article 1 of Cabinet Decision No. 25 of 2018 , shall not charge VAT on the supply if the all following conditions are met:

- The recipient is a VAT registrant; 

- A written declaration is obtained by the supplier from the recipient confirming all the follows:

- The recipient will use the Gold Items to produce or manufacture other Gold Items, or to re-sell the Gold Items rec...