Customer service | The Silver Mountain

Different VAT rules apply to precious metals depending on the type of metal and the form in which it is sold. In practice, two arrangements are most relevant: the VAT exemption for investment gold and the margin scheme for certain investment coins.

If you would like to learn more about the general VAT rules for precious metals, you can also read our explanation of VAT when buying and selling precious metals.

VAT exemption for investment gold

Within the European Union, investment gold is exempt from VAT. This exemption applies to gold bars and certain gold coins that meet specific requirements, such as a minimum purity and recognition as investment gold.

Because these products fall under the VAT exemption, 0% VAT is charged when purchasing qualifying gold bars and recognised gold coins.

Margin scheme for investment coins

For investment coins made of silver, platinum and palladium, dealers often apply the margin scheme. Under this scheme, VAT is not calculated on the full selling price but only on the dealer’s profit margin. As a result, no separate VAT amount is shown on the invoice.

When does the margin scheme not apply?

The margin scheme generally applies only to coins. Bars made of silver, platinum and palladium do not fall under this scheme and are therefore typically subject to 21% VAT. For private investors this can make bars of these metals less attractive. For business buyers the situation may differ, as VAT can sometimes be reclaimed from the Dutch Tax Administration.

If you would like to learn more about the tax treatment of precious metals, you can also visit our overview page about tax rules for gold, silver and other precious metals.