How does VAT work when buying and selling precious metals?

VAT rules differ depending on the type of precious metal. Investment gold is exempt from VAT, while silver bars are generally subject to 21% VAT in the Netherlands. 

Would you like to learn more about why silver is taxed differently from gold? You can also read our explanation of why VAT applies to silver but not to gold. 

VAT exemption for investment gold 

Investment gold is exempt from VAT. Both gold bars and gold coins that meet the requirements for investment gold under European legislation are therefore sold with 0% VAT. 

Silver, platinum and palladium 

These metals are generally classified as industrial commodities for tax purposes. As a result, bars made of silver, platinum and palladium are typically subject to 21% VAT in the Netherlands. 

Margin scheme for coins 

Investment coins made of silver, platinum and palladium are often sold under the margin scheme. Under this scheme, VAT is only calculated on the dealer’s profit margin rather than on the full sales price.