Yes on jewellery, no on investment gold. Jewellery carries 15% VAT, charged on the whole amount: the gold value + the making charge + the shop's margin. Investment gold, meaning gold of 99% purity or higher that can be traded on the global bullion market, is taxed at 0%. So a 5 g 21K ring with a making charge of SAR 50 per gram costs 2,638.44 SAR today, of which 344.14 SAR is VAT.
Is there VAT on gold in Saudi Arabia?
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Last updated: Source: metals.dev in Saudi riyals, dollars at the 3.75 peg · World benchmark: LBMA price · How we get our prices
The rule in Saudi Arabia
For VAT, gold falls into two types:
| Type | VAT |
|---|---|
| Gold of 99% purity or higher that can be traded on the global bullion market (investment bars and coins, in practice 24K) | 0% |
| Jewellery and manufactured pieces, or gold below 99% purity (22K, 21K and 18K) | 15% on the whole amount |
When does gold count as "investment" gold?
Article 36 of the VAT Implementing Regulations, issued by ZATCA, treats a qualifying metal as supplied for investment if its purity is at least 99% and it can be traded on the global bullion market.
The same article lists the qualifying metals as gold, silver and platinum. ZATCA confirmed this in a statement reported by the Saudi Gazette (2022): gold of 99% purity or higher that can be traded on the global bullion market is zero-rated, and jewellery carries 15% if the seller is registered for VAT.
So a piece below 99% purity (22K is 91.7% pure, 21K 87.5% and 18K 75%), or gold made into shaped jewellery, carries 15%.
This is general information, not tax advice. For particular cases, check with ZATCA or a specialist.
Why is VAT charged on the whole amount?
Because a manufactured piece is an ordinary good, and the price you pay covers the work and design as well as the metal. As soon as gold becomes a ring or a bracelet, VAT applies to the full price, making charge included.
Worked example at today's price
A 5 g 21K ring, with a making charge and margin of SAR 50 per gram (an example making charge; the gold price is today's and updates on its own):
| Item | Amount |
|---|---|
| Gold value (5 × 408.86 SAR) | 2,044.30 SAR |
| Making charge and margin (5 × 50) | SAR 250 |
| Price before VAT | 2,294.30 SAR |
| 15% VAT on the whole amount | 344.14 SAR |
| Final price | 2,638.44 SAR |
Of that VAT, SAR 37.50 is on the making charge alone (250 × 15%). That is why any reduction in the making charge also saves you the VAT on it. See How do I negotiate the price of gold?
How much VAT is charged on gold in the Gulf?
The Gulf states signed the same unified VAT agreement, so the rule is similar: investment gold (99% or higher) is zero-rated, and jewellery pays the standard rate. The difference lies in the rate, and in the fact that Kuwait and Qatar have not applied VAT so far:
| Country | Standard rate (on jewellery) | Investment gold | Source |
|---|---|---|---|
| Saudi Arabia | 15% | 0% (99% purity or higher, tradable on the bullion market) | Implementing Regulations, Article 36 |
| UAE | 5% | 0% (99% purity or higher, tradable on the bullion market) | Federal Tax Authority: Cabinet Decision 52 of 2017, Article 36 |
| Bahrain | 10% (from 1 January 2022) | 0% (99% purity or higher, in a regular form such as bars and coins; excludes jewellery) | National Bureau for Revenue: VAT General Guide |
| Oman | 5% | 0% (supplies of investment gold, silver and platinum, on the conditions in the regulations) | Tax Authority: VAT Law, Articles 36 and 51 |
| Kuwait | No VAT applied | — | PwC: Kuwait tax summaries (reviewed 22 July 2026) |
| Qatar | No VAT applied | — | PwC: Qatar tax summaries (reviewed 17 September 2026) |
So the same ring before VAT (2,294.30 SAR) has 15% added in Saudi Arabia, 10% in Bahrain and 5% in the UAE and Oman. That changes the final price, but making charges also differ between markets, so compare the full price, not just the rate.
The quick version
- Investment bars and coins (99% or higher): no VAT in Saudi Arabia and the other Gulf states that apply VAT.
- Jewellery: 15% in Saudi Arabia on the whole amount, and the VAT does not come back when you sell the piece.
- If keeping VAT down matters to you, the difference between bars and jewellery is clear. The full comparison is in Gold bars or jewellery?
To separate the VAT and making charge from the price of any piece, use the shop-price check. The full method is in How do I know if a gold shop's price is fair? The Dhahabi iPhone app by SKA breaks down the VAT and making charge in a shop's price (in Dhahabi Pro).
Sources
- ZATCA: VAT Implementing Regulations, Article 36, supplies of investment metals (Arabic).
- ZATCA, via the Saudi Gazette: VAT applicable to gold if its purity level is below 99% (2022).
- UAE, Federal Tax Authority: Executive Regulation of the VAT Law (Cabinet Decision 52 of 2017), Article 36.
- Bahrain, National Bureau for Revenue: VAT General Guide, version 1.16, section 6.3.11, and the 10% standard rate page.
- Oman, Tax Authority: VAT Law, Article 36 (the 5% rate) and Article 51 (the zero rate) (Arabic).
- PwC Worldwide Tax Summaries: Kuwait and Qatar.
Frequently asked questions
Can I get the VAT back if I sell the gold?
No. The VAT you pay when you buy jewellery is not refunded when you sell the piece.
Are 21K or 22K bars VAT-free?
No. The zero rate is for gold of 99% purity or higher, which in practice means 24K. 22K is about 91.7% pure and 21K about 87.5%, so it does not apply to them.
How do I know if a price includes VAT?
Ask the shop and request an itemised invoice. If the price includes VAT, divide it by 1.15 to get the price before VAT.
Is VAT charged only on the making charge?
No. On jewellery, VAT is charged on the whole amount: the gold value, the making charge and the shop's margin.
Is gold cheaper in the UAE or Bahrain because of VAT?
The VAT rate on jewellery is lower: 5% in the UAE and Oman and 10% in Bahrain, against 15% in Saudi Arabia. Kuwait and Qatar do not apply VAT. But the final price also depends on each shop's making charge, so compare the full price.