Do I Pay VAT On Gold And Silver?

Author: Ian Davis - Bullion Manager

Published: 20 Apr 2018

Last Updated: 12 Aug 2019

Do You Have To Pay VAT On My Gold and Silver Bullion Investment?

Do I pay tax on gold? Should I buy gold now? Currently one of the biggest reasons to choose gold is the fact HMRC currently regard the precious metal as VAT exempt.

Gold is Tax Free

Gold investment bullion is already exempt from VAT and we explain why in this blog here. 

Silver is Taxable at 20%

Silver on the other hand is still subject to a 20% rate of VAT unless you buy on the special scheme. You can learn more about the special scheme by clicking here. 

It is hardly surprising , given how confusing HMRC's guidance can be, that many investors simply assume that silver, platinum and palladium are also VAT free. We try our best to educate where possible and  answer any question you have either via live chat, email or on the telephone. 

VAT Free Silver

VAT free silver can be bought outside of the EU but you will end up paying VAT if you have it delivered. Please read our blog on why buying physical bullion that can be delivered is the most reliable way to invest in a precious metal. Relying on a third party to store silver in a country outside of the EU is not our preferred method. If you wish to take advantage of VAT free products simply invest in gold. 

VAT Free Silver 1 oz Coin Best Value Newly Minted - Storage Only

Newly Minted Silver Coin

Stock Status - Available

Quantity Premium Total
1
£3.40
£17.03

Price Per Item:
£17.03
5
£3.35
£84.90

Price Per Item:
£16.98
10
£3.34
£169.70

Price Per Item:
£16.97
25
£3.33
£424.00

Price Per Item:
£16.96
50
£3.32
£847.50

Price Per Item:
£16.95
100
£3.31
£1,694.00

Price Per Item:
£16.94
250
£3.29
£4,230.00

Price Per Item:
£16.92
500+
£3.11
£8,370.00

Price Per Item:
£16.74

VAT Free Silver 1 Kilogram Metalor Bar - Storage Only

1 Kilo Metalor Bar

Stock Status - Available

Quantity Premium % Total
1
12
£490.96

Price Per Item:
£490.96
2
11
£973.16

Price Per Item:
£486.58
5
10
£2,411.00

Price Per Item:
£482.20
10
9.4
£4,795.70

Price Per Item:
£479.57
25+
8.5
£11,890.50

Price Per Item:
£475.62

Do We Advise Customers To Buy Silver?

We certainly do advise customers to buy silver. The first obvious piece of advice is if you have a means to reclaim the VAT via a business purchase then it makes no difference the rate of VAT - we do however advise you speak with an accountant before making a purchase as we cannot make any reassurances you will be able to claim the VAT back. Secondly if you are taxed 20% you need to be mindful that prices need to go up in order for you to make a profit, with this said it is best to buy when silver price is low relative to gold. You can view our live ratio here or read more on our spot price blog here. Finally with the recent increases in silver prices since the mid 2000's  it would appear that you would quickly recover the VAT you paid and the relative increases of silver vs gold are in silver's favour. It could therefore be assumed that silver coins and bars could be a better investment than gold, which goes against the grain of most advice. We ourselves have bought and still hold a significant portion of our stock in silver and believe spreading risk across both metals is a good idea. 

Further Reading

You may wish to view all of our articles on our gold guide

You may wish to view all of our articles on our silver guide

This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2019. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.

We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.

You can read more about copyright or our advice disclaimer on these links.