Gold VAT and Making Charges in Saudi Arabia: What You Really Pay
By Editorial team ·
The gram rate you see online is the raw value of the metal. At the shop you also pay a making charge and 15% VAT. Here is how it all adds up.
VAT on gold in Saudi Arabia
- Jewellery (18K, 21K, 22K): 15% VAT, charged on the gold value and the making charge.
- Investment gold, silver and platinum of 99% purity or more, tradable in bullion markets: zero-rated in most cases. This is a big reason to save in 24K bars.
- Selling your own used gold to a shop as an individual: you pay no VAT.
What is a making charge?
The fee for turning raw gold into a finished piece: design, casting, finishing and the maker's and shop's margin. It is usually quoted in SAR per gram. Simple chains and coins are cheap; handmade, Italian or stone-set pieces cost more. Our buy and sell page shows typical new-jewellery prices.
Worked example
A 20 g 21K bracelet, gram rate 434.92 SAR, making charge 35 SAR/g:
- Gold value = 20 × 434.92
- Making = 20 × 35 = 700 SAR
- VAT = 15% × (gold value + 700)
- Total = (gold value + 700) × 1.15
Try it with live prices in the gold calculator.
Why making charges don't come back
When you sell, the shop buys your piece as raw gold at the gram rate minus a small deduction. Making charges and VAT are gone, so high-making jewellery is a poor savings vehicle.
How to pay less
- Compare at least three shops for the same design.
- Negotiate the making charge, especially on heavier pieces.
- Buy outside wedding and Eid peaks.
- For saving, choose bars or coins.
- Ask for gold value, making and VAT to be listed separately on the invoice.
FAQ
How much VAT is charged on gold in Saudi Arabia?
15% on jewellery, applied to both the gold value and the making charge.
Are gold bars VAT-free in KSA?
Investment bars of 99% purity or more are generally zero-rated.
Do I get the making charge back when I sell?
No, only the gold value is paid when you sell.
