VAT on Gold in European Countries: Rules, Rates & Exemptions
VAT on Gold in European Countries: Investment gold is exempt from VAT in every EU country, and in the UK and Switzerland, but jewellery, collector coins, scrap and lower-purity gold are generally charged VAT at each country’s standard rate, which ranges from about 17% to 27% across Europe.
Under the EU’s special scheme for investment gold, gold bars and wafers of at least 995 fineness (99.5% pure), and qualifying gold coins of at least 900 fineness that are or were legal tender, can be bought and sold with no VAT. Silver, platinum and palladium are not covered, so they carry the full standard rate.
What does differ from one country to the next is everything around VAT: the standard rate on non-exempt gold, the tax on selling, the treatment of private gains, and how coins are listed and documented.
This guide explains VAT on gold in European countries: what counts as investment gold, how jewellery and other gold are taxed, a comparison of standard rates, the rules in Germany, France, Spain, Italy, the Netherlands, Belgium, Switzerland and the UK, and how to make sure you are not charged VAT you do not owe.
VAT on Gold in Europe at a Glance
| Type of Gold or Metal | VAT Treatment in the EU |
|---|---|
| Investment gold bars and wafers (995+ fineness) | Exempt |
| Qualifying investment gold coins (900+ fineness, minted after 1800, legal tender, on the EU list) | Exempt |
| Gold jewellery | Standard VAT rate |
| Collector and numismatic coins | Standard VAT, often under the margin scheme |
| Lower-purity gold, scrap and gold material | Standard VAT, or reverse charge between businesses in some countries |
| Silver, platinum and palladium | Standard VAT rate, not covered by the investment gold exemption |
Why Is Investment Gold Exempt From VAT?
European law treats investment gold as a financial asset rather than a consumer good. The special scheme for investment gold in the EU VAT Directive (Articles 344 to 356) exempts the supply of qualifying gold, and the same exemption applies when it is imported.
The aim is to keep gold available as a store of value without a tax that would make it uncompetitive against markets outside the EU. The scheme is harmonised, so a qualifying bar is VAT-exempt in Germany, France, Spain, Italy and every other member state, though how each country applies the rules and what else it taxes differs.
What Counts as Investment Gold in the EU?
To be VAT-exempt, gold must meet precise tests:
| Form | Requirement |
|---|---|
| Bars and wafers | At least 995 fineness (99.5% pure), in weights accepted by bullion markets |
| Coins | At least 900 fineness, minted after 1800, legal tender in the country of origin, normally sold at a price not more than 80% above the value of the gold content, and on the EU’s published list of qualifying coins |
Widely traded bullion coins such as the Vienna Philharmonic, the Krugerrand and the Maple Leaf are generally on the list, but the list is updated each year, so check the current version before relying on it. A coin that is rare, sold at a high premium or struck for collectors may fail the test, even if it is high-purity gold.
VAT on Gold Bars and Gold Coins
Gold bars: a bar of at least 995 fineness is exempt, so you pay the gold’s value plus the dealer’s premium, but no VAT. A 1 kg bar, a 1 oz bar and a 1 gram bar are all treated the same way for VAT, though premiums differ. See our guides to the 1 oz gold bar price, gold bars and 1 kg gold bars.
Gold coins: only coins that meet the investment gold tests are exempt. Collector and commemorative coins are generally taxed, often under the margin scheme, where VAT is charged only on the dealer’s margin rather than the full price. See our guide to buying gold coins online.
VAT on Gold Jewellery in Europe
Jewellery is not investment gold, however pure it is. A 24K necklace, 22K bangle or 18K ring is sold at the full standard VAT rate in the EU, usually on the whole price including the making charge.
Lower-purity items, such as 14K or 9K gold, are treated the same way, and when sold as scrap they may be handled as gold material between businesses under reverse charge rules.
This is why jewellery costs more than the gold content alone, and why bars are the more tax-efficient way to hold gold as an investment. For how purity changes value, see our guide to the price of 18K gold.
Standard VAT Rates on Non-Exempt Gold: Selected European Countries
When gold does not qualify as investment gold, the country’s standard rate applies:
| Country | Standard VAT Rate (Commonly Cited) |
|---|---|
| Luxembourg | 17% |
| Germany | 19% |
| Austria | 20% |
| France | 20% |
| Netherlands | 21% |
| Belgium | 21% |
| Spain | 21% |
| Czech Republic | 21% |
| Italy | 22% |
| Ireland | 23% |
| Portugal | 23% |
| Poland | 23% |
| Greece | 24% |
| Sweden | 25% |
| Denmark | 25% |
| Hungary | 27% |
| United Kingdom (outside the EU) | 20% |
| Switzerland (outside the EU) | About 8% |
These are the commonly cited standard rates and member states change them from time to time, so confirm the current rate with the national tax authority before relying on it.
What the Difference Means: A Simple Example
Take a €10,000 purchase of gold. If it is investment gold, the VAT is zero in every EU country. If the same value of gold is non-exempt, such as jewellery, the VAT adds:
| Country | VAT on a €10,000 Purchase | Total |
|---|---|---|
| Investment gold, anywhere in the EU | €0 | €10,000 |
| Luxembourg (17%) | €1,700 | €11,700 |
| Germany (19%) | €1,900 | €11,900 |
| Spain (21%) | €2,100 | €12,100 |
| Hungary (27%) | €2,700 | €12,700 |
This is illustrative, but it shows why knowing whether gold qualifies as investment gold matters so much.
VAT on Silver, Platinum and Palladium vs. Gold
The exemption is for gold only. Silver, platinum and palladium bars and coins are charged the standard VAT rate in the EU, which ranges from 17% in Luxembourg to 27% in Hungary, and this is why silver in particular looks more expensive to buy than gold relative to its metal value.
Some dealers sell silver through special schemes or from tax-advantaged storage, so check how any silver purchase is taxed. The same applies to the UK, where silver carries 20% VAT.
Country-by-Country: VAT and Related Taxes on Gold
The VAT exemption is common, but countries differ in what else they tax. This table summarises the main points:
| Country | VAT on Investment Gold | Other Tax Points |
|---|---|---|
| Germany | Exempt | Collector coins use the margin scheme; private sales of gold held for more than a year are generally tax-free |
| France | Exempt | Selling is taxed, either at a flat rate of about 11.5% of the sale price (plus small levies) or under a gains-based regime that reduces over time |
| Spain | Exempt | Silver and other metals carry the standard 21% rate |
| Italy | Exempt | Tax can apply on sale in some circumstances |
| Netherlands | Exempt | No tax on gains as such, but physical gold falls within the wealth-based Box 3 regime |
| Belgium | Exempt | Generally no tax on private gains |
| Switzerland | Exempt | A major gold hub with no VAT on investment gold and generally no tax on private capital gains |
| United Kingdom | Exempt | UK legal-tender coins such as Sovereigns and Britannias are exempt from Capital Gains Tax |
Rules on gains and wealth are separate from VAT and change, so check the position for your own tax residence. See our guide to taxes on physical gold for the wider picture, and our guides to buying gold in the UK, buying gold bars and coins online in the UK and buying gold online in Switzerland.
VAT on Gold in Germany
Germany exempts investment gold under its VAT Act, and collector coins that do not qualify are taxed under the margin scheme. Gold held privately for more than a year is generally free of tax on the gain when sold, which is a significant incentive. Jewellery and non-investment gold carry 19% VAT.
VAT on Gold in France
France exempts the purchase of investment gold from VAT, but it taxes the sale, and sellers can choose between a flat tax on the sale price and a gains-based system that reduces with the holding period. Jewellery carries 20% VAT.
VAT on Gold in Spain and Italy
Both countries apply the EU exemption to investment gold, with Spain charging 21% on silver and non-qualifying gold, and Italy 22% on non-exempt items. Check how gains and sales are treated locally.
VAT on Gold in the Netherlands and Belgium
Both exempt investment gold from VAT. The Netherlands does not tax gains as such but includes physical gold in its wealth-based regime, while Belgium is known for generally not taxing private gains. Non-exempt gold is charged 21%.
VAT on Gold in Switzerland and the UK
Switzerland and the UK are outside the EU but follow a similar principle: investment gold is exempt from VAT, while jewellery and other gold are taxed at the standard rate (about 8% in Switzerland and 20% in the UK). See our guide to gold prices per gram in the UK.
Reverse Charge and the Margin Scheme: Rules for Businesses
Dealers and traders face two additional systems:
- Reverse charge. In many countries, supplies of gold material or semi-finished gold of high enough purity between VAT-registered businesses are subject to the reverse charge, meaning the buyer accounts for the VAT instead of the seller. The rules differ by country.
- Margin scheme. Collector coins and second-hand goods may be sold under a margin scheme, where VAT is charged only on the dealer’s margin.
- Optional taxation. Under the special scheme, dealers can sometimes choose to tax supplies of investment gold, which changes how VAT is recovered, and this is mostly relevant to businesses.
Businesses must also keep detailed records of gold transactions. If you trade in gold, take professional advice.
VAT on Imported Gold in Europe
Investment gold imported into the EU is exempt from import VAT, and bullion enters duty-free, while non-investment gold can bear import VAT at the member state’s rate.
The correct classification, documents and declarations determine the outcome. For the full process, see our guide to customs clearance for gold imports in Europe, and for a comparison with a major bullion hub outside Europe, gold import duties in Dubai.
How to Make Sure You Are Not Charged VAT You Do Not Owe
- Check the product meets the test: bars of at least 995 fineness, or a coin on the current EU list.
- Ask the dealer to confirm VAT treatment and show it on the invoice, which should identify the item as exempt investment gold.
- Compare the premium, not just the price, since a zero-VAT price from one dealer can be undercut by a lower premium elsewhere.
- Watch for add-ons, such as delivery, insurance and storage, which can carry VAT even on exempt gold.
- Keep the invoice, assay certificate and serial numbers. They prove the treatment and support resale.
- Test the gold for anything valuable. See our guides to gold authentication and how to spot fake gold.
- Be cautious about unusually cheap offers, which are a scam warning. Read why cheap African gold offers can be dangerous.
Buying Gold in Africa for Delivery to Europe
Buyers in Europe can also buy certified gold directly from licensed African exporters, with the investment gold VAT exemption applying on import once the bar meets the purity test.
A licensed exporter typically quotes about 1 to 3% over the live spot price on larger bars, and the paperwork, from export permit to assay certificate, supports the customs declaration.
Buy Gold Bars Africa is a licensed exporter based in Uganda supplying certified gold bars, gold ingots and bulk orders. See our safe buying guide, the legal requirements to buy gold bars from Africa and our guide to the illegal gold trade in Africa.
Frequently Asked Questions: VAT on Gold in European Countries
Is gold VAT-free in Europe? Investment gold is. Bars of at least 995 fineness and qualifying coins are VAT-exempt across the EU, while jewellery, collector coins, scrap and lower-purity gold are generally taxed.
What is investment gold under EU VAT rules? Bars and wafers of at least 995 fineness, and coins of at least 900 fineness minted after 1800, which are or were legal tender and are on the EU’s annual list.
Is VAT charged on gold bars in the EU? No, not on qualifying investment gold bars.
Is VAT charged on gold coins in the EU? Only on coins that do not qualify. Coins on the EU list are exempt.
Is gold jewellery subject to VAT in Europe? Yes, at the country’s standard rate, usually on the full price including the making charge.
Is silver VAT-free in the EU? No. Silver, platinum and palladium carry the standard VAT rate, from 17% in Luxembourg to 27% in Hungary.
What is the VAT on gold in Germany? Investment gold is exempt, and non-investment gold carries 19%.
What is the VAT on gold in France? Investment gold is exempt from VAT, though selling is taxed under a flat or gains-based regime, and jewellery carries 20%.
Is VAT charged on gold in the UK and Switzerland? Not on investment gold, which is exempt in both, while jewellery carries 20% in the UK and about 8% in Switzerland.
Do I pay VAT when importing gold into the EU? Not on investment gold, which is exempt from import VAT, though non-investment gold can bear import VAT at the member state’s rate.
What is the reverse charge on gold? In many countries, the buyer accounts for the VAT on certain gold material supplied between VAT-registered businesses, instead of the seller charging it.
How do I prove my gold is VAT-exempt? With an invoice identifying it as investment gold, an assay certificate confirming fineness, and, for coins, evidence it is on the EU list.
Are there taxes other than VAT on gold in Europe? Yes, such as taxes on sale in some countries, capital gains rules and wealth taxes, which differ by country and by your residence.
Get Certified Gold That Qualifies as Investment Gold
For a quote on certified 999.9 bars with full documentation, contact Buy Gold Bars Africa Ltd, message us on WhatsApp at +256 707 585144, or read about our company. You can also compare buying gold bars at the lowest price.
