Gold is one of the most popular investment options and a symbol of wealth in Saudi Arabia. But if you’re planning to buy gold, whether for investment or jewelry, you probably have one big question: “Do I have to pay VAT, and how much?”
Let’s break it down in simple, practical terms — with real examples, tips, and everything you need to know.
Understanding VAT in Saudi Arabia
What Is VAT?
Value‑Added Tax (VAT) is a type of tax applied to most goods and services in Saudi Arabia. Introduced in 2018, it initially started at 5% but was increased to 15% in July 2020.
Who Regulates VAT on Gold?
The Zakat, Tax and Customs Authority (ZATCA) handles all VAT rules in Saudi Arabia. They set the rates, approve exemptions, and make sure businesses comply. (zatca.gov.sa)
How VAT Applies to Gold
Not all gold is treated the same. The VAT depends on:
- Purity of the gold
- Type of product (investment bullion vs jewelry)
1. Investment-Grade Gold (Bullion & Coins)
- Gold that is 99% pure or more (usually 24K bars or coins) is considered investment gold.
- Investment gold is generally exempt from VAT (0%).
- This means when you buy certified 24K bars or coins, you pay only the market price, no tax added.
Tip: Always buy from a trusted, certified dealer to ensure your gold qualifies as investment-grade.
2. Gold Jewelry or Products < 99% Purity
- Jewelry, ornaments, or any gold with less than 99% purity is subject to the standard 15% VAT.
- VAT applies to the total cost — this includes:
- Gold price
- Making charges (design, labor, etc.)
Example:
You buy a 22K gold ring costing SAR 1,000 (gold + making charges). VAT = 1,000 × 15% = SAR 150 → Total price = SAR 1,150.
Why the Difference?
- Investment gold is treated like a financial asset — it’s meant for saving or investment, so VAT is 0%.
- Jewelry is a manufactured product with design, craftsmanship, and added value, so VAT applies.
This distinction encourages investment in pure gold while keeping consumer products taxable.
Practical Tips for Buying Gold in Saudi Arabia
- Check purity and certification – 24K / 99%+ for investment gold.
- Always get a proper invoice – shows weight, purity, and whether it’s investment or jewelry.
- Separate metal from making charges – helps calculate VAT correctly.
- Consider resale value – investment gold is easier to resell; jewelry may involve deductions.
- Buy from certified dealers – avoid misclassification and VAT surprises.
Examples & Comparisons
| Gold Type | Purity | VAT | Notes |
|---|---|---|---|
| 24K Bars / Coins (Investment) | ≥ 99% | 0% | VAT-free if certified |
| Jewelry (Rings, Necklaces, Bracelets) | < 99% | 15% | VAT applies on gold + making charges |
| Non-certified bars or coins | < 99% | 15% | Treated like taxable gold |
FAQs
Q: Is all gold taxed at 15% VAT?
A: No. Only jewelry or gold under 99% purity is taxed. 24K investment-grade gold is 0% VAT.
Q: How is VAT calculated for jewelry?
A: VAT = (Gold price + Making charges) × 15%. Example: SAR 1,000 × 15% = SAR 150.
Q: Do VAT rates vary by region?
A: No. VAT is applied uniformly across Saudi Arabia.
Q: Does buying abroad affect VAT?
A: Imported gold may be subject to customs duties or VAT. Always check rules when bringing gold into Saudi Arabia.
People Also Ask
-
Do I pay VAT on 24K gold coins?
Only if they are not certified as investment-grade. Certified 24K coins → 0% VAT. -
Will VAT affect resale value of gold jewelry?
Not really. Resale is usually based on gold weight and purity, not VAT paid. -
Can VAT rules change?
Yes. Always check the latest ZATCA updates before buying large quantities.
Conclusion
Here’s the bottom line:
- Investing in gold: Buy 24K / 99%+ bars or coins → VAT-free.
- Buying jewelry: Expect 15% VAT on total price.
Pro tip: Always request a detailed invoice with purity, weight, and making charges. It saves you money and prevents confusion.
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