The taxation of precious metals: tax rules, VAT & Box 3

Anyone who owns physical gold, silver, platinum, or palladium will encounter fiscal rules. In practice, the taxation of precious metals raises many questions: do you have to declare precious metals to the Tax Authorities? Do coins and bars always fall into Box 3? And why is VAT applied to silver and platinum, but not to investment gold?

In this knowledge center article, we clearly explain how the taxation of precious metals is regulated. We cover the differences between the various precious metals, the role of VAT, the valuation on the reference date, and the fiscal treatment of coin collections.

In doing so, we distinguish between private and corporate ownership and provide practical tools for correct processing in the tax return.

What do the Tax Authorities understand by precious metals?

The Tax Authorities do not use a separate legal definition of precious metals, but in practice, they look at the nature of the metal, the form in which it is held, and the purpose of the ownership. In a fiscal sense, this usually concerns the following precious metals:

• Gold
• Silver
• Platinum
• Palladium

These precious metals can occur in the form of coins, bars, or collectibles. For fiscal treatment, it is not only the material that is important, but especially the question of whether the ownership is classified as an investment or as possession for personal purposes.

Investment versus personal possession

When precious metals are easily tradable and their value is mainly determined by the current precious metal price, the Tax Authorities see this in most cases as an investment. This applies in particular to common bullion coins and bars of gold, silver, platinum, and palladium.

Only in exceptional situations can precious metal ownership be classified as personal possession or a collection, for example, when the value is primarily cultural, historical, or numismatic and is not primarily related to the precious metal value.

Precious metals and Box 3: how does that work?

For private investors, precious metals are in most cases classified as assets in Box 3 (savings and investments). This means that you do not pay tax on the ownership itself, but on the notional return that the Tax Authorities assume over your total Box 3 assets.

When do precious metals belong to Box 3?

Precious metals generally fall into Box 3 when:

• it concerns physical gold, silver, platinum, or palladium;
• the ownership has a wealth function;
• the value is mainly determined by the current precious metal price.

This applies to both coins and bars, regardless of whether they are kept at home or stored externally.

The annual valuation date: January 1st

For the tax return, the purchase price is not decisive, but the value of your precious metals on the reference date of January 1st of the tax year. You add this value to your other assets in Box 3, such as savings and investments.

It is important to use a consistent and well-substantiated valuation method. For investment gold and other precious metals, market prices around the reference date can be used.

Tax-free allowance

Within Box 3, a tax-free allowance applies. Only when your total Box 3 wealth exceeds this limit are you liable for tax. Precious metals are part of this total and are not separately exempted.

Investment gold and tax: a special position

Investment gold occupies a special position within taxation. This is because different VAT rules apply to gold than to other precious metals, while its ownership is fiscally included in Box 3.

What is understood by investment gold?

According to European and Dutch regulations, gold qualifies as investment gold when it meets specific conditions. This concerns:

• gold bars with a purity of at least 99.5%;
• gold coins with a gold content of at least 90%;
• coins that are (or have been) legal tender;
• coins that are primarily traded based on their gold value.

Many common bullion coins, such as the Maple Leaf and the Krugerrand, fall under this definition.

No VAT upon purchase

An important advantage of investment gold is that it is exempt from VAT. Therefore, when purchasing investment gold, you do not pay 21% VAT, which distinguishes gold from silver, platinum, and palladium.

Box 3 applies

However, the VAT exemption does not mean that investment gold is tax-free. For private investors, investment gold is seen as wealth and must be declared in Box 3 at its value on the reference date of January 1st.

Investment gold is exempt from VAT, but it is taxed in Box 3.

Silver, platinum, and palladium: VAT and Box 3

In contrast to gold, silver, platinum, and palladium are fiscally regarded by the legislator as raw materials. This has consequences for both the VAT treatment upon purchase and the processing in Box 3 for private ownership.

VAT for silver, platinum, and palladium

When purchasing silver, platinum, and palladium, the standard VAT rate of 21% applies in principle. However, there are important differences per form:

• Silver coins are often traded under the margin scheme. The VAT is then incorporated into the sales price and is calculated over the dealer's profit margin.
• Silver bars, platinum, and palladium are, in principle, fully subject to VAT. The VAT is calculated over the full purchase price.
• In specific situations, such as storage in a customs warehouse, VAT can be deferred. However, this does not concern a regular private situation.

Box 3: Wealth tax

For private investors, silver, platinum, and palladium (just like gold) fall under Box 3 (savings and investments). You declare these precious metals at their value on the reference date of January 1st and add this to your other Box 3 wealth.

The form in which the precious metal is held (coin or bar) makes no difference for Box 3. However, it is important to establish the valuation carefully and consistently.

Platinum coins and VAT

Platinum coins are often compared to gold bullion coins, but fiscally the treatment is fundamentally different. Platinum does not qualify as investment gold and therefore does not fall under the VAT exemption that applies to gold.

Why is platinum subject to VAT?

In European regulations, the VAT exemption applies exclusively to investment gold. Platinum, like silver and palladium, is fiscally classified as a raw material. This means that when purchasing platinum coins, 21% VAT is levied in principle.

The form of the platinum, coin or bar, makes no difference here. Also, the fact that a platinum coin is (or has been) legal tender does not lead to a VAT exemption, as is the case with gold.

Platinum coins and Box 3

For private investors, platinum coins fall under Box 3 (savings and investments). You must declare the coins at their value on the reference date of January 1st of the tax year. This value counts as part of your total Box 3 wealth.

Practical meaning for investors

Anyone considering investing in platinum coins would do well to take into account:

• the VAT upon purchase;
• the valuation in Box 3;
• and the difference in fiscal treatment compared to investment gold.

Coins that have been designated as investment gold by the European Commission are always taxed in Box 3.

Coin collections and the Tax Authorities

A frequently asked question is how the Tax Authorities deal with a coin collection. Not every collection is automatically seen as an investment, but in practice, coin collections often fall under Box 3 anyway.

When does a coin collection belong in Box 3?

The Tax Authorities assess a coin collection based on facts and circumstances. A coin collection is usually classified as Box 3 wealth when:

• the value is largely determined by the precious metal (gold, silver, platinum, or palladium);
• the coins are easily tradable;
• the collection primarily has a wealth function.

This applies in particular to collections consisting of common bullion coins. In that case, the coin collection must be declared to the Tax Authorities at its value on the reference date of January 1st.

When can a coin collection be considered outside Box 3?

In exceptional situations, a coin collection can be classified as possession for personal purposes. This may be the case, for example, when:

• the value is primarily numismatic, historical, or cultural;
• the collection is hardly or not at all traded;
• the coins have no direct link with the current precious metal price.

The Tax Authorities do not use a fixed list or threshold for this. Each situation is assessed individually, whereby consistency and substantiation are of great importance.

Private and corporate ownership of precious metals

The fiscal treatment of precious metals is strongly related to who the owner is and for what purpose the precious metal is held. The Tax Authorities distinguish between private ownership, collections, and corporate ownership.

Private ownership of precious metals

For private investors, the ownership of gold, silver, platinum, and palladium is in most cases seen as an investment. For that reason, precious metals must be declared in Box 3 (savings and investments) of the annual tax return.

You declare the value on the reference date of January 1st of the year for which you are filing a return. Not the purchase price, but the value on this reference date is decisive for the fiscal processing.

Precious metals as an investment or as a collection

In specific cases, ownership of precious metals can be classified as possession for personal purposes, for example, in the case of a collection. However, this does not automatically mean that the ownership falls outside Box 3.

Furthermore, for investment gold, the European Commission has drawn up an official list of coins that always fall under this category. Well-known bullion coins such as the Maple Leaf and the Krugerrand therefore do not fiscally qualify as collectibles, but as investments and thus fall into Box 3.

Although exemptions exist for collections and objects of art and science, it is assessed factually per situation whether this is the case.

To determine whether and to what extent you can make use of such exemptions, expert fiscal advice is recommended. The Silver Mountain does not advise on this.

You can find more information about Box 3 on the website of De Belastingdienst.

Corporate ownership of precious metals

Legal entities, such as a BV, can also invest in precious metals. In that case, the precious metals belong to the assets of the company. Value changes and results from precious metal investments form part of the profit and are, in principle, taxed with corporate income tax.

Corporate investments in precious metals can be fiscally valued at:

• the purchase price, or
• the market value.

When valued at a lower market value, a (not yet realized) loss may be deductible from the profit in the relevant year. A higher market value, on the other hand, leads to a (not yet realized) profit, which is taxed.

The chosen valuation basis must be applied consistently in the following years.

Because every corporate situation is unique, it is advised to always consult with a bookkeeper or accountant about this.

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Practical: step-by-step guide to declaring precious metals in your tax return

Correctly declaring precious metals in your tax return requires care, but is manageable with a clear approach. The checklist below helps you step by step with processing your precious metal ownership in Box 3.

1. Determine which precious metals you own on January 1st: Make an inventory of all your physical precious metals.
2. Establish whether it concerns gold, silver, platinum, or palladium: This is important for correct categorization.
3. Use a reliable reference value: Use the market value on the reference date of January 1st.
4. Add the value to your other Box 3 wealth: Add the total value to your savings and investments.
5. Take the tax-free allowance into account: Check if your total assets exceed the exemption threshold.

Conclusion on precious metal taxation

The taxation of precious metals requires clear knowledge and a careful approach. Whether you invest in gold, silver, platinum, or palladium, in most cases, precious metals fall under Box 3 and the value on the reference date is decisive for the tax return.

By distinguishing between investments, collections, and corporate ownership, and by valuing consistently, you prevent lack of clarity. With the right preparation and up-to-date information, you maintain control over your fiscal position and can responsibly include precious metals in your wealth strategy.

Table: comparing tax conditions per precious metal

In summary, you will find the tax rules for gold, silver, platinum, palladium, and coin collections below.