Do I Pay VAT On Silver?

What Is VAT Free Silver?

VAT Free Silver Bars

Silver VAT Free

Silver free of VAT can only be delivered or stored outside of the UK in countries that offer VAT-free silver storage like Switzerland and Norway. If you are uninterested in physically holding your silver bullion then this is a good option for you as you can immediately save 20% on your silver purchase. Items such as the Loco Zurich 1 ounce Silver coin are stored in a bonded warehouse in Zurich, Switzerland, and are ideal for those looking to store bullion long term.Our preferred method is to own physical bullion and we would encourage others to do the same but if you intend to buy a lot of silver you may benefit from investing in our silver bars like the VAT Free Silver 1 Kg Bars, which are our Loco Zurich options, stored in Zurich, Switzerland. 

Tax Free Silver

The majority of silver bars and silver coins will attract VAT in the UK. For example, if you purchase Silver Britannias, Silver British Lunar and coins like the Silver Queen’s Beasts new, you will pay VAT on them. This is because silver is not considered an investment asset in the same way gold is treated, so it is subject to VAT at the standard rate when purchased from new. However, by purchasing pre-owned silver coins you can benefit from something called the margin scheme. In essence, you can avoid paying VAT on a purchase, if the VAT was already accounted for when the product was first sold. Therefore, this can make purchasing pre-owned silver coins an attractive option for silver investors. 

Silver holds significant value because of its industrial applications mostly, but it is also used in jewellery and other manufacturing processes. For VAT purposes, silver is classified like any other commodity rather than solely as an investment. Consequently, VAT is typically included in the sales price.

Why Is There No VAT on Gold?

In 1999, the European Union (EU) collectively voted to remove VAT on gold bullion, concluding that it was an investment. Before 1st January, the sale of gold in the UK included VAT. Many countries outside the EU and UK were offering minimal VAT levels to gain an upper hand in the gold market. To regain a foothold in the market, the EU scrapped VAT on investment gold.

Why Are Premiums Listed as a Percentage or a Fixed Monetary Value?

It's also important for us to establish that premiums on bullion products can be set as either 'percentage premiums' or 'monetary premiums'.

Most mints and dealers price gold as percentage premiums as it makes price comparison easier for investors. But for "new" silver it's subject to VAT, so mints and producers charge in monetary premiums (£, $, or €) per ounce or per item. However, the only circumstance this would differ for silver is for pre-owned silver sold on our 'Special Scheme'. This makes it easy for us to price as percentage premium, and simple for all to understand.