Saudi Gazette report

RIYADH – Zakat, Tax, and Customs Authority (ZATCA) announced that value added tax (VAT) will be imposed on gold if its purity level is less than 99 percent.

The authority clarified that gold is subject to zero VAT if its purity level is 99 percent or above, in addition to being tradable in the global bullion market only.

ZATCA emphasized that 15 percent of VAT will be applied to gold jewelry when sold by a person registered in the VAT system.

According to Asharq Al-Awsat newspaper, the global stock markets witnessed wide fluctuations while gold prices fell to their lowest levels in nearly a year. This was attributed to the impact of the increased interest rates made by major central banks to curb rising inflation on the precious metal.