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Do You Pay VAT on Bullion Products?

Published by honor in category Precious Metal Information Guides on 25.01.2024
Gold price (XAU-GBP)
1,606.74 GBP/oz
  
+ GBP6.58
Silver price (XAG-GBP)
17.74 GBP/oz
  
+ GBP0.04
tax advantages

When it comes to investing in precious metals like gold and silver, one common question that often arises is whether you need to pay Value Added Tax (VAT) on bullion products. The answer to this question can vary depending on several factors, including the type of bullion product you are purchasing and the country in which you are making the purchase.

In this article, we will look into the details of VAT on bullion products, why you get charged VAT on products, and provide you with the information you need to make informed decisions about your precious metal investments.

Understanding VAT and Its Implications

What is VAT?

VAT, or Value Added Tax, is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is typically borne by the end consumer, making it a significant consideration for anyone looking to buy bullion products.

VAT Rates

VAT rates can vary from country to country, and even within different regions of a country.

In the United Kingdom, for example, the standard VAT rate is currently 20.0%

This may differ in the European Union. However, some items, including certain investment-grade bullion products, may be exempt from VAT or subject to a reduced rate.

VAT on Gold Bullion

Gold Bullion Coins and Bars

In the UK, all gold bullion coins and bars are exempt from standard VAT. This means that when you purchase gold coins or bars for investment purposes, you should not expect to pay any VAT on top of the purchase price.

This exemption applies to both sovereign coins like the British Gold Sovereign and internationally recognised bullion coin and bullion bars, such as the 1 troy ounce Gold British Britannia.

Conditions for Exemption

It’s important to note that the exemption from VAT on gold bullion is contingent on the product meeting specific criteria.

austrain_philharmoniker_1_oz_2023_investment_gold_coin_obeverse In Stock

1oz Austrian Philharmonic Gold Coin 2023

We sell 1+ £1,687.85 1574.73 1574,73 1574.73 1574,73 1574.73 1574,73 1687.85 1687,85 1684.63 1684,63 1679.81 1679,81
We sell £1,679.81 1574.73 1574,73 1574.73 1574,73 1574.73 1574,73 1687.85 1687,85 1684.63 1684,63 1679.81 1679,81
We buy £1,574.73
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The gold must be of a purity level that qualifies it as investment-grade bullion. In the case of the UK, this means the gold must have a minimum purity of 995 parts per thousand.

VAT on Silver Bullion

Silver 1oz britannia coins

Silver Bullion Coins and Bars

Unlike gold bullion, silver bullion products are generally subject to standard VAT in the UK.

When you purchase silver coins or bars, you will typically pay the standard 20.0% VAT on top of the purchase price

Being subject to VAT can significantly impact the overall cost of your silver investment, increasing the silver price by the standard VAT rate of 20%.

Buying Bullion Products Online

When purchasing bullion products online, it’s essential to be aware of the VAT implications. Different dealers may have varying policies regarding VAT, and it’s crucial to read the product descriptions and terms of sale carefully.

2024 Coin
1oz British Britannia Silver Coin 2024 Image Rosy In Stock

1oz British Britannia Silver Coin

We sell 1+ £24.71 17.4 17,40 17.4 17,40 17.4 17,40 17.4 17,40 24.71 24,71 24.59 24,59 24.35 24,35 23.99 23,99
We sell £23.99 17.4 17,40 17.4 17,40 17.4 17,40 17.4 17,40 24.71 24,71 24.59 24,59 24.35 24,35 23.99 23,99
We buy £17.40
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In the UK, reputable dealers like The Royal Mint and Tavex provide clear information about VAT on their websites, helping you make informed decisions about your precious metal investments. Please note, on the Tavex website all our silver products have VAT included in the price shown.

Conclusion

In summary, whether or not you pay VAT on bullion products depends on the type of metal, its purity, and the country’s tax regulations. Gold bullion coins and bars are typically exempt from VAT in the UK, while silver bullion products are subject to standard VAT.

To ensure you fully understand the VAT implications of your bullion purchases, it’s advisable to do your research and consult with a reputable dealer in the bullion market such as Tavex. Investing in precious metals can be a sound financial strategy, and being aware of the tax considerations is an essential part of your investment journey in the long term.

Gold price (XAU-GBP)
1,606.74 GBP/oz
  
+ GBP6.58
Silver price (XAG-GBP)
17.74 GBP/oz
  
+ GBP0.04

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