For the Investment Metals Sector

This Guideline This Guideline is directed to natural and legal persons engaged in the investment metals sector, including producers, processors, operators, wholesalers and retailers, and those using investment metals for industrial, commercial, and investment purposes. 2. Definitions Relating to Key Terms Qualified Metals: For VAT purposes, the following: Gold Silver Platinum1 All Qualified Metals are considered precious metals pursuant to the regulations of the Ministry of Industry and Mineral Resources and the regulations of the Ministry of Commerce2. Those regulations set out provisions relating to the supervision and control of the trade and manufacture of precious metals and do not conflict with the VAT treatment of Qualified Metals. Other metals are not considered Qualified Metals, even if they have characteristics or uses similar to Qualified Metals. 1 Article 36(3)(a), Investment Metal Supplies, Implementing Regulations 2 Implementing Regulations of the Precious Metals and Gemstones Law issued by Ministerial Resolution No. 1000 dated 8th Rabi’ al-Thani 1406H/20th December 1985 and its amendments A Qualified Metal is considered supplied for investment purposes if its purity level is not less than 99% and it is tradable on the international bullion market3. A metal supplied for investment purposes is referred to as an “Investment Metal.” The following supplies are not considered supplies of Qualified Metals: Decorative plates, bars, or wafers, or collectible bars, plates, or wafers. Granules for industrial use. Non-qualified precious coins and jewellery. Metal Producer: For VAT purposes, any person engaged in the mining and extraction of Qualified Metals4. Metal Processor: For VAT purposes, any person engaged in refining a commodity so that it becomes a Qualified Metal through any form of processing5. The Processor must be licensed in accordance with the relevant regulations of the Ministry of Commerce and Investment. Economic Activity: An activity falling within the scope of VAT, including the activities of legal persons as well as activities carried out on a continuous basis by natural persons. For VAT purposes under the Unified VAT Agreement6, Economic Activity is defined as: “An activity conducted in a continuous and regular manner including commercial, industrial, agricultural, professional, or service activities or the use of tangible or intangible property and any similar activity.” Article 36(3)(b), Investment Metals Supplies, Implementing Regulations Article 36(3)(c), Investment Metals Supplies, Implementing Regulations Article 36(3)(d), Investment Metals Supplies, Implementing Regulations