Do I Pay VAT On Gold And Silver?
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 is 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. We can answer any questions 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.
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 that 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.
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We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.