What about VAT on silver?

What about VAT on silver?

Gold is exempt from VAT in the Netherlands because it is primarily considered an investment product. Silver, on the other hand, does not have this advantage because it is regarded as an industrial raw material. Still, some silver investment products are not subject to VAT, how is that possible?

Industrial material

Silver is more commonly used as an industrial raw material compared to gold. It is utilized in electronics, mirrors, solar panels, and medical products. For this reason, silver is taxed in the Netherlands at 21% VAT, meaning you pay VAT on silver bars and silver investment products.

This is a major drawback for private individuals, as you cannot reclaim VAT on investment silver. In effect, this makes silver 21% more expensive than a comparable gold product. However, there are a few exceptions.

Silver pre-owned coins

Until 2025, silver coins were considered collectible items, which allowed them to be traded under the margin scheme. Under this scheme, VAT only had to be calculated over the dealer’s profit margin, not the full silver value. For example, if a dealer has a 5% margin, about 1% of the purchase price would be VAT.

However, the government has decided to abolish this exemption for coins starting in 2025. New silver coins will therefore be taxed at 21% VAT, just like silver bars. An exception still applies to silver coins purchased before 2025, these remain under the margin scheme. These older coins are now in high demand, and with new mint years, the supply of coins with VAT will grow.

Silver storage in Switzerland

Another way to avoid VAT on silver is to buy VAT-free silver and store it in a customs bonded warehouse in Switzerland. Since Switzerland is not a member of the European Union, the silver is not formally imported into the EU, and therefore no VAT is due.

Due to storage costs, VAT-free silver is mainly attractive for larger purchases, starting from around €25,000.

Is VAT on Silver Really a Problem?

There are ways to avoid VAT on silver, but the options are limited. The question is then, is VAT on silver really a significant issue? Of course, it would be more convenient if silver investment products were VAT-exempt, like gold.

However, VAT is also reflected in the selling price when you sell the silver. So, in practice, it’s not necessarily true that you're losing the full 21% VAT when you buy silver. Furthermore, silver has different market dynamics than gold, so it can certainly be worthwhile to diversify financial risk between silver and gold.

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.