VAT treatment on workmanship service amended

Pursuant to a resolution issued by the Cabinet:

• The Ministry of Finance announces the amendment of the VAT treatment on workmanship service when supplying gold and diamonds between registerants in the country.

• 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” from June 1, 2018 to December 31, 2022.

• The definition provided for in the aforementioned Cabinet Resolution No. 25 of 2018 will be referred to, starting from January 1, 2023.

• the term provided in the aforementioned Cabinet Decision No. (25) of 2018 (goods) will be re-applied starting from January 1, 2023.