Business And Markets

VAT Relief for Gold

VAT Relief for Gold
VAT Relief for Gold

As per the new tax rules, value added tax on gold trade will be levied only on services, profit and fees, the vice president of Tehran Gold and Jewelry Union said.
According to Mohammad Kashti-Aray, the original value of gold will no longer be taxable. The guild official hailed the decision that was long demanded by the jewelers, IRNA reported.
Jewelers for long had said that VAT should be levied only on fees they charge for “making the jewelry”. Observers say the competitive edge of domestic gold and jewelry producers was undermined under the previous VAT system.
As per law, jewelers charge 9% VAT on sales. One gram of 18-karat gold in the local market Saturday was worth 10.62 million rials, according to the TGJU website.


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