
We recently assisted one of our large clients in Gold Bullion Trade to obtain a clarification on VAT treatment from FTA. In the private clarification issued, FTA clarified that premium is considered as part of the consideration for the supply of the goods and shall be subject to same VAT treatment.
A taxable person is required to impose VAT
5 on all its taxable supplies unless the supplies qualify for zero rating under Article 45(8) of UAE VAT Law Accordingly.
If the taxable person supplies goods which qualify
as precious metals within the Article 36 (2) of the Executive Regulation, the whole consideration for the supply, including the premium will be subjected to zero rate