Why there is no VAT on gold

Why is there no VAT on gold? Buying gold VAT-free is one of the main advantages for investors in physical precious metals. Gold is considered a form of investment in many countries, including the Netherlands and Belgium, and is therefore exempt from VAT. This makes gold a particularly attractive investment, compared to silver and other precious metals that are often subject to VAT.
We explain why gold is exempt from VAT, how it works for other precious metals, and how to buy gold VAT-free from a trusted provider such as The Silver Mountain.
 

Why is gold exempt from VAT?

Gold is considered a form of investment gold and is therefore exempt from VAT in the Netherlands and most other European countries. This exemption applies to gold bars and gold coins that meet the legal criteria, such as a purity of at least 99.5% for gold bars.
The VAT exemption makes gold an attractive investment, because it provides immediate tax benefits compared to silver bars, for example, which are subject to VAT. Gold is mainly seen as a stable investment and a protection against inflation, which is the basis for the exemption.
 

What about VAT on silver and other precious metals?

Unlike gold, silver and other precious metals, such as platinum and palladium, are subject to VAT. This is because these metals often have an important industrial function. For example, silver is used in the production of electrical appliances and solar panels. For this reason, a VAT rate of 21% is applied to silver in the Netherlands.
Silver coins, on the other hand, are often bought under the margin scheme, where VAT is only paid on the profit margin instead of the total value. This is because silver coins are not used in industry, and are also not seen as an investment.
 

Is there VAT on gold in Belgium?

In Belgium, gold that is purchased as an investment is also exempt from VAT, just like in the Netherlands. This applies to gold bars and gold coins, which are considered investment gold. 
The legislation regarding VAT exemption for gold in Belgium is almost the same as in the Netherlands. In Belgium, strict criteria apply for what is considered investment gold. For example, they look at the purity and the fact that the coins must have been minted after 1800.
 

What does the VAT exemption mean for gold investors?

The VAT exemption on gold means that investors buy gold without paying 21% tax, which makes the purchase considerably more advantageous. This makes gold one of the most attractive precious metals to invest in. In addition, the VAT exemption on investment gold offers investors the opportunity to protect their assets against inflation.
Gold sometimes has these protective properties. This distinguishes gold from other precious metals, which are subject to VAT, making other precious metals less attractive to investors looking for long-term investments.
 

How can you buy gold VAT free?

You can buy VAT-free gold by choosing recognized gold bars and coins that meet the criteria for investment gold. You can easily purchase investment gold from dealers such as The Silver Mountain.
This gold must meet strict requirements, such as a minimum purity of 99.5% and origin from a recognized producer. By using the VAT exemption you save considerably on the purchase costs, which makes buying gold extra attractive.
 

Benefits of buying VAT-free gold from The Silver Mountain

At The Silver Mountain, you not only benefit from the VAT exemption on gold, but also from the certainty that you are investing in high-quality gold. We offer gold products from recognized LBMA-certified producers, which means that you own globally tradable gold.
In addition, The Silver Mountain offers a buyback guarantee, so you can always sell your gold at fair market prices. Thanks to the VAT exemption and our reliable service, you can invest in gold with peace of mind.