Gold has a special place in Saudi Arabian culture — it’s valued for investment, jewelry, weddings, and gifts. To protect consumers and ensure transparency in the market, Saudi authorities enforce clear laws and regulations on gold trading and ownership.
This guide will help you understand how to stay compliant, calculate zakat, and buy or sell gold safely in the Kingdom.
Table of Contents
VAT on Gold in Saudi Arabia
- Current VAT Rate: 15 % (effective since July 1, 2020)
- Authority: Zakat, Tax and Customs Authority (ZATCA)
How VAT Applies
- Jewelry, ornaments, and making charges: Always subject to 15 % VAT.
- Investment-grade gold (≥ 99 % purity): May qualify for 0 % VAT (zero-rating) under specific ZATCA conditions, such as being traded as bullion or meeting required purity standards.
- Coins and collectibles: Usually taxed at 15 %.
💡 Tip: Always check your invoice — it must clearly state gold purity, weight, making charges, and VAT.
Zakat on Gold
- Nisab (minimum threshold): 85 grams of pure (24K) gold
- Zakat rate: 2.5 % on the gold’s market value after one lunar (Hijri) year
- Example:
Owning 100 g of 24K gold → Pay zakat on 100 g × current price × 2.5 %
📱 Use our Gold Zakat Calculator to find your zakat in SAR.
⚖️ Note: Some Islamic scholars exempt personal-use jewelry from zakat; confirm with your local scholar or preferred interpretation.
Import & Export Rules
Importing gold: Must be declared to Saudi Customs if it exceeds the personal allowance.
- Exporting gold: Large quantities may require declaration or approval.
- Goal: Prevent smuggling, money laundering, and fraud.
💡 Tip: Always keep your purchase receipts when traveling with gold.
Gold Trading & Licensing Requirements
To operate legally in Saudi Arabia, all gold dealers and shops must:
✅ Hold a valid Ministry of Commerce license
✅ Display correct karat markings (18K, 21K, 22K, 24K)
✅ Disclose accurate weight and purity
✅ Provide detailed invoices including VAT, purity, and total price
🛡️ Regulation Purpose: To ensure quality, authenticity, and protect consumers from counterfeit or substandard gold.
Consumer Rights & Authenticity
As a gold buyer in Saudi Arabia, you have the right to:
- Request a certificate of authenticity or assay report
- Receive a clear and complete invoice (showing purity, weight, and VAT)
- Verify karat and scale accuracy before purchase
- Report fraud or counterfeit gold directly to the Saudi Ministry of Commerce
📞 Consumer Protection Hotline: 1900
🌐 Website: https://mc.gov.sa
💡 Tip: Always buy from licensed gold shops or souqs for guaranteed authenticity and legal protection.
Penalties & Enforcement
Saudi Arabia enforces strict penalties for violations in the gold market, including:
- Selling fake or counterfeit gold → fines, confiscation, or imprisonment
- Operating without a valid license → business closure and legal action
- Incorrect karat labeling or invoice fraud → heavy financial penalties
These rules are monitored by the Ministry of Commerce and ZATCA.
Tourist VAT Refunds (New 2025 Update)
As of April 18, 2025, foreign tourists visiting Saudi Arabia can claim VAT refunds on eligible purchases, including gold jewelry bought from ZATCA-approved retailers.
🧾 To qualify:
- Buy from a store registered in the Tourist VAT Refund Program
- Keep the digital tax invoice and refund form
- Claim at airports or border exit points
References & Sources
Zakat, Tax and Customs Authority (ZATCA)
Saudi Gazette – VAT on Gold Clarification
Soul of Saudi – VAT Refund Program 2025
Disclaimer
GoldPriceKSA.com provides informational content only. Regulations, taxes, and zakat obligations may change. Please verify with official Saudi authorities or consult a licensed advisor before making financial or religious decisions.
Last Updated: September 2025