Gold, silver and platinum can maintain special positions in the market in relation to tax regimes. Like many tax topics, this is a complicated subject, and is especially complicated because different types of precious metal products are treated differently.
We’ve put together a list of some of the most common questions and answers:
What is Value Added Tax (VAT)?
VAT is the tax you pay on something you buy, which usually adds 20% to the price, although there is also a 5% and 0% VAT rate.
All gold bullion sold by The Royal Mint including The Sovereign & Britannia ranges are VAT free for non VAT registered private individuals. However, silver and platinum bullion, regardless of the country of issue, are subject to VAT at the current rate of 20%.
Why do I pay Value Added Tax (VAT) on Silver and Platinum Bullion?
Almost everything we buy in the UK is subject to VAT. There usually has to be a good reason for the government not to add VAT to a product, and silver and platinum are no different. Interestingly, gold used to be subject to VAT too, until the start of this millennium.
So why is no VAT charged on Gold anymore?
Before 1st January 2000, gold sales in the UK were subject to VAT. This changed because of the disparity between rules in the European Union. For example, some countries in the EU didn’t charge VAT on gold at all or charged it at a very low rate, which meant that the UK was at a disadvantage compared with other EU member states. The introduction of the exemption meant that for VAT purposes, gold would be treated the same as other investments, such as stocks and shares.
Will I be charged VAT on orders outside of the European Union?
For orders dispatched to countries outside of the EU, VAT will not be charged. These packages may however be assessed for import or customs fees, depending on the laws of the particular countries.
All invoices regarding products, services, storage or delivery from The Royal Mint will be subject to VAT where appropriate, and VAT charges will be clearly shown where applicable.
Please be advised that The Royal Mint are not tax advisers and any information provided on our website in connection with the tax status of products is provided for general information purposes only, and should not be relied upon; in particular, the underlying tax legislation is always subject to change. You should obtain any specific advice from your tax adviser.
Click here to view our current range of VAT-free gold bullion coins.