We recently assisted one of clients in Gold Bullion Trade to obtain a clarification on VAT treatment from FTA.
In the private clarification issue d by FTA, it has been clarified that supply of Lab grown or man made Diamonds are subjected to 5 VAT and do no qualify for Reverse charge Mechanism (RCM).
Consequently, registered person is required to impose and account for VAT and issue Tax Invoice on the supply of lab grown and man made diamonds, as the reverse charge mechanism does not apply to aforementioned diamonds.