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The retailers in the UAE believe that there shouldn't be VAT (value-added tax) at a wholesale level and it must be removed in order to make the industry better once again. Jewellery shoppers and sellers in UAE will get some relief if the government put an ease on the VAT (value-added tax) charges at wholesale level; especially on deals like diamond and gold. Though it totally depends on the retailers now to show the amount of savings from the wholesalers that will be passed on to the consumers. The industry sources also say that only a little bit of cost-benefit could boost the sentiments of shoppers since the past four months had been quite difficult for them as the VAT registration in UAE has been also announced recently. The managing director of International at Malabar Gold & Diamonds, Shamlal Ahmad says that he is hopeful that these new directions will help in keeping Dubai competitive and better when it comes to the prices of gold. VAT Charges at Wholesale Level – Government's Actions The gold industry sources were optimistic that the government of UAE will take some steps for the VAT structure. Particularly, they highlighted that with VAT and 5% import duty on the jewellery, shoppers who've had price benefits from purchasing gold in UAE have lost their charm. The same applies to both local buyers and visitors who want to purchase diamond or gold jewellery. However, the government finally took an action to protect the jewellery industry of Dubai which took a long time to build up and come to this point. According to the general manager at Sky Jewellery, Cyriac Varghese, the industry will wait for more clarification from the UAE VAT expert team on VAT benefits at a retail level. However, he believes that the cabinet review shows that the government has eradicated a complex structure – involving goldsmiths, manufacturers, and bullion suppliers along with retail suppliers. Though the draft also conveys that there is no major benefit which has been passed on to the customers and shoppers directly. The chairman of the Dubai Gold & Jewellery Group, Tawhid Abdullah stated that the government's move provides only a few benefits however, it ensures that soon UAE will regain its competitiveness globally in the diamond, gold, and jewellery industry.
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8/4/2022 03:20:39 pm
Thanks for sharing such a informative blog! We know you need to keep a grip on costs, so our monthly fee starts from £0, including free ATM withdrawals and transactions. If you don’t use your account one month, you don’t pay the monthly fee.
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