Can you claim VAT on jewelry and watchesin the UAE?

Last reviewed 27 Oct 2026

Recoverable as a client gift, with a deemed supply over AED 500. Blocked for personal use.

For the wider rules, see Flowers/Gifts.

When you can claim the VATand when it's blocked

Usually bought as a client gift or a personal item, so it follows the gift rules: VAT on a client gift is recoverable, but gifts over AED 500 per recipient in 12 months become a deemed supply.
Investment-grade gold (99% purity or more) bought as an asset is zero-rated.

Depends
Watch worth AED 3,000 for a key client
VAT recoverable, but a deemed supply arises above the AED 500 threshold.
VAT on a client gift is recoverable, but a gift over AED 500 to one person in 12 months is a deemed supply. You also account for output VAT on it, reduced by the AED 2,000 annual relief on deemed supplies.
No VAT to recover
Investment-grade gold bar held as a treasury asset
Zero-rated, nothing to claim.
Investment-grade gold of 99% purity or more is zero-rated, so there's no VAT to claim.
Blocked
Necklace bought on a company card for personal use
Blocked, and not a business expense.
A personal purchase isn't a business expense. The VAT is blocked and the cost doesn't belong in the company's books, so recover it from the employee.

Tax invoice; gift register.

Depends. Follows the gift treatment.

GL account: Gifts and samples

Claiming VAT on personal jewelry bought on a company card.

Is gold zero-rated?

Investment-grade gold of 99% purity or more, bought as an asset, is zero-rated. Jewelry and watches are standard-rated at 5%.

How do client gifts of jewelry or watches work?

The VAT is recoverable, but a gift worth more than AED 500 to one person in 12 months is a deemed supply, so you also account for output VAT.

What if jewelry is bought on a company card for personal use?

The VAT is blocked and it isn't a business expense. Recover the cost from the employee or owner.