VAT on gold in Saudi Arabia
Gold jewellery in Saudi Arabia carries VAT at the basic rate of 15%, under Article 2 of the VAT Law, on the full value of the supply: gold and making charge together. Investment metals are different. For gold, silver and platinum at least 99% pure and tradeable on the world bullion market, Article 36 of the Implementing Regulations zero-rates the first supply made by the metal’s producer or refiner. The text does not extend the zero rate to a later sale, such as a retail shop selling a bar it bought from a refinery, a condition many articles leave out when they say bars are simply exempt in Saudi Arabia. The calculator shows the VAT on your piece split between the gold and the making charge, so you can see where the money goes. Because the riyal is pegged to the dollar at 3.75, the gold value and its VAT follow the ounce price alone. For expats used to buying gold VAT-free elsewhere, this is the line on the invoice that surprises most.
VAT on the piece (15%)
SAR 693
out of a SAR 5,316 total
| VAT on the gold value | SAR 656 |
| VAT on the making charge | SAR 38 |
| Price before VAT | SAR 4,622 |
Checked by Radif Partners · How we calculate · Editorial policy
The text: Article 2 of the Law
ZATCA publishes the VAT Law, whose Article 2 applies VAT at a basic rate of 15% of the value of a supply or import, unless a provision grants an exemption or a zero rate. Gold made into jewellery is neither exempt nor zero-rated, so the basic rate applies to its full value. The value of the supply is what the buyer pays for the piece: gold, making charge and any other fee on the invoice.
A worked example
A ten-gram piece of 21K with a making charge of 25 riyals a gram. The gold value is ten times today’s 21K gram price and the making charge is 250 riyals. VAT is 15% of the two together. The calculator above runs this example at today’s price and splits the VAT between the gold and the making charge. The larger part is always on the gold, since it is worth more, but the part on the making charge is the one you can cut by negotiating.
Article 36: investment metals
Article 36 of the Implementing Regulations zero-rates the first supply of a qualifying metal by its producer or refiner, and the grant, assignment or surrender of a right, interest or claim in a supply of a qualifying metal for investment where it transfers possession of the goods. A qualifying metal is gold, silver or platinum, supplied for investment when at least 99% pure and tradeable on the global bullion market. Read plainly, the zero rate covers the first sale by the refinery or mine, and a later sale from a trader to a consumer falls back on the general rule.
Read the invoice before the articles
Many Arabic pages say 24K bars are VAT-exempt in Saudi Arabia without mentioning the first-supply condition. Some sellers may apply the zero rate in specific cases, for instance a refinery’s own outlet, but that shows on the tax invoice. The practical rule: ask which rate applies before paying, have it printed on the invoice, then choose in the bar calculator whether the seller is the refiner to see the difference.
How it compares with the UAE
In the UAE the standard rate is 5%, and the zero rate for investment metals covers every supply, not just the first. A bar in Dubai is therefore VAT-free from any seller, and jewellery is cheaper by the gap between the two rates at equal making charges. Details on the UAE gold VAT page; figures in the Gulf comparison calculator.
What the calculator does not do
It does not compute import VAT or customs duty, and it assumes no exemption we have not read in the text. Its gold price is the current ounce from gold-api.com at the Saudi Central Bank rate, and the making charge is a figure you enter. If you are a VAT-registered trader, input tax and reverse charge rules between businesses are outside the scope of this page.