VAT Free Investment Gold

VAT Free Investment Gold

VAT FREE INVESTMENT GOLD

The purpose of this document is to supplement the uniform basis of assessment for VAT in the European Community by introducing a special scheme for gold.

In order to promote the use of gold as a financial instrument, the European Union has introduced a tax exemption for supplies of investment gold in all member states of the European Union. The new European Directive enhances the competitiveness of the European Community gold market.

The updated EU Directive 2006/112/EC on VAT applies on the trading, hedging and other related precious metals activities in Europe such as:

  • Physical delivery of precious metals
  • Unallocated Metal Weight Accounts (UMWA) without physical delivery of precious metals
  • UMWA with physical delivery of precious metals
  • Transactions without change of ownership of precious metals (which must be differentiated from holding precious metals, and are also referred to as Intra-Community Supplies and Intra-Community Acquisitions).

 

Definition of investment gold in relation to the tax exemption for supplies of investment gold:

  • Gold, in the form of a bar or a wafer of weights accepted by the bullion markets, of a purity equal to or greater than 995 thousandths, whether or not represented by securities.
  • Gold coins which are of a purity equal to or greater than 900 thousands, are minted after 1800, are or have been legal tender in the country of origin, and are normally sold at a price which does not exceed.

 

An investment gold coin is a gold coin minted after 1800 that:

  • is of a purity of not less than 900 thousandths
  • is, or has been, legal tender in its country of origin, and
  • is of a description of coin that is normally sold at a price that does not exceed the open market value of the gold contained in the coins by more than 80%.

 

Quick Vat Free Coins List

British Sovereigns, Half Sovereigns, £2, £5

Britannias (all  sizes)

All sizes of South African Krugerrands

Canadian Maple Leafs

USA 1, 1/2, 1/10 Ounce Eagles - $20 , $10, $5, $21/2, $1

Mexican "Onza" coins, 50, 20, 10, 5, 21/2, 2, and 1 Pesos

Australian Nuggets

Austrian 100 and 20 Coronas - 1 and 4 Ducats  - 20 and 10 Francs - Philharmonikers

Belgian 20 Francs

French 20 Francs

German 20, 10, and 5 Marks

Italian 80, 40, and 20 Lire

Dutch 10 and 5 Guilders

Denmark 20 Kroners

Norwegian 20 Kroners

Swiss 100 and 20 Francs

Each year the European Member States list which coins meeting these criteria are traded on their territory.

For general information you may download:

The European Commission Vat Free Coins Full List Download PDF  
The European Directive Download PDF

These notes are for guidance only and do not purport to be a definitive legal interpretation of the provisions of the Regulation.

 

 

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