The MoF announced a change in the VAT treatment of workmanship services when supplying gold and diamonds between Registrants in the State.
According to the resolution, there will be a temporary replacement for the definition of “goods” contained in Article (1) of Cabinet Decision No. (25) of 2018 on the Mechanism of Applying Value Added Tax on Gold and Diamonds between Registrants in the State to be “gold, diamonds and any products whose main component is gold or diamonds, which may include workmanship services directly related to the supply of these commodities”.
This amendment will be in effect from June 1, 2018 to December 31, 2022, with the term provided in the aforementioned Cabinet Decision No. (25) of 2018 (goods) being reinstated on January 1, 2023.
The Federal Tax Authority will provide taxpayers with additional information about the amendments.