The VAT rules for silver coins

Since 1 January 2025, a new VAT rule has been in force in the Netherlands: 21% VAT is levied on all newly minted silver coins and coin bars. As a result, newly issued silver investment products have become considerably more expensive and less attractive to investors who want to buy physical silver at the lowest possible premium.

Pre-owned silver coins and coin bars

An important exception applies to pre-owned silver coins and bars. These remain subject to the margin scheme. This means that 21% VAT is not calculated on the full silver value, but only on the trader's profit margin. This makes pre-owned coins and bars a much more attractive option from a tax perspective.

Dutch silver coins, such as old guilders and rijksdaalders, are also still covered by the margin scheme and benefit from the same tax advantage.

VAT-free silver with storage

Finally, there is the option of investing in VAT-free silver in combination with storage. In this case, the silver is stored in a specialised and secure storage facility outside the Netherlands, which means it is exempt from VAT. This offers investors an attractive alternative for investing in silver on the most favourable terms.

Practical impact for investors

For many private investors, this change means that choosing silver becomes more strategic. While newly minted silver coins and bars are less attractive due to the VAT levy, pre-owned coins or VAT-free silver offer additional opportunities to build up physical silver in a cost-efficient manner. This makes it possible to continue buying silver at a relatively low premium.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.