By the way about gold, how does it stand?

Value Added Tax (VAT) is often a point of discussion when it comes to buying and selling gold. In some cases, VAT may apply to gold. The distinction between investment gold and processed gold is crucial in this regard. We provide clarity on how VAT on gold works and offer insights into smart gold investment strategies.
 

Investment Gold and Tax

 
In many countries, investment gold is exempt from VAT, including the Netherlands. This exemption applies to gold in the form of bars or coins that have a purity of at least 99.5% for gold bars or 90% for gold coins and that have been minted by a recognized institution. Coins must also have been legal tender in the country of origin and must have been minted after 1800 in order to be counted as investment gold.
Gold is mainly used to secure assets and protect them against inflation. Investment gold is part of your assets, which means it is not subject to consumption tax and you therefore do not pay VAT on it. You do pay wealth tax. You can declare investment gold under box 3 when you file your tax return.
 

VAT on jewelry and processed gold

Unlike investment gold, gold jewelry and other forms of processed gold are subject to VAT. VAT is applied because these products are considered luxury goods and are purchased for consumption or use, rather than for purely financial purposes. In the Netherlands, the standard VAT rate of 21% applies to gold jewelry and other gold products. This can make a significant difference in the final price that consumers pay for gold jewelry.
 

VAT and the gold trade

The application of VAT on gold can have an indirect impact on the gold trade. The exemption of VAT on investment gold can increase the demand for this form of gold, because investors face lower transaction costs. On the other hand, the VAT on gold jewelry and processed gold can increase the price of these products, which can reduce the demand.
Gold price fluctuations can also be affected by the supply and demand of investment gold versus processed gold. In times of economic uncertainty, demand for investment gold can increase, which can lead to a rise in the gold price. The opposite can happen when the economy is stable and consumers buy more gold jewelry. 
These influences are often indirect because investors and consumers have different wishes. Investment gold is after all a protection of assets while processed gold is used in luxury products that will be used.
 

This is how you buy gold smartly

It is important to consider the taxes you have to pay when you want to buy gold, so that you know exactly what costs are involved. Do you want to invest? Then you buy the best investment gold that is exempt from VAT. For these gold coins and gold bars, you do have to pay wealth tax of approximately 1.2%. Gold jewelry, on the other hand, is always subject to 21% VAT.
At The Silver Mountain you can easily buy investment gold. All products we sell are checked for authenticity and we only work with recognized producers. This way you can be sure that the gold you buy from us has the highest degree of purity and that the gold is recognized and tradable worldwide. In addition, we offer a unique buy-back guarantee through our subsidiary Inkoop Edelmetaal. As long as your investment gold comes from a recognized producer, we can buy it back from you.