Introduction: How EU VAT changes your total cost of ownership
Buying gold or silver in the European Union is not just about the spot price and a dealer’s premium. VAT (Value Added Tax), capital gains rules, AML/CRS obligations, and even wealth taxes can change your real “all-in” cost and future proceeds. The headline that drives most decisions is simple: qualifying investment gold is VAT-exempt in the EU, while silver, platinum, and palladium are usually subject to the local standard VAT rate. But the details matter—what qualifies as “investment gold,” which country’s VAT applies on cross-border purchases, how imports are treated, and how your gains are taxed later can differ by Member State. This guide translates the legal framework into buyer-ready decisions, with tables and examples so you can budget precisely and avoid surprises. We will cite official EU and national sources where it matters (VAT Directives, HMRC/Agencia Tributaria/BMF, etc.), but keep the tone practical and action-oriented. If you plan to buy outside your home country, or you already hold metals in multiple jurisdictions, use this as a reference to minimize tax friction and keep documentation ready for audits or resale.
EU VAT Directive on investment gold
Investment gold enjoys a specific exemption across the EU. The core rules originate in Council Directive 98/80/EC, later consolidated into the EU VAT Directive (Directive 2006/112/EC) under the Special Scheme for Investment Gold (Articles 344–356). In plain language, the Directive defines “investment gold” to include: (1) gold bars or wafers of fineness ≥ 995/1000 and of accepted bullion market weights; and (2) certain gold coins that meet objective criteria on purity (≥ 900/1000), legal-tender status, year of minting (after 1800), and typical sale price (≤ 180% of melt value). The effect: supplies of investment gold are exempt from VAT (though producers/transformers can opt to tax in limited cases). These EU provisions are mirrored in national guidance (e.g., Spain’s LIVA annex rules, UK’s VAT Notice 701/21/701/21A post-Brexit). For buyers, the key is verifying that your bar/coin meets the legal definition—if not, you may face full VAT at the standard rate. For coins, the EU and national authorities publish lists and criteria; dealers usually label compliant coins as “investment gold,” but your invoice should reflect the exemption explicitly.
Wondering how EU/UK rules differ for silver specifically? Our EU/UK silver VAT guide breaks down exemptions and edge cases.
Investment gold definition (bars ≥995 fineness, recognized coins)
To qualify as “investment gold,” bars and wafers must be ≥ 995 fineness and in weights accepted by bullion markets (from small gram bars up to kilobars and London Good Delivery). Coins must be ≥ 900 fine, minted after 1800, legal tender in their country of origin (now or historically), and generally sold at no more than 180% of the melt value. Many popular coins—American Eagle (gold), Canadian Maple Leaf, Austrian Philharmonic, Britannia, Krugerrand—fit the regime, but always check the dealer’s VAT treatment and your invoice wording. In the UK, HMRC’s VAT Notice 701/21A provides a coin list and restates the coin criteria; EU Member States rely on the Directive’s definition and their own implementing rules. If a coin fails one of these tests, it’s treated like non-qualifying gold (standard VAT applies). The take-home: don’t assume “a gold coin” = VAT-free. Confirm the exact product spec, purity, and legal-tender status before you wire funds.
VAT exemption for qualifying gold
When a product qualifies, the sale is VAT-exempt across the EU. That exemption covers domestic transactions and intra-EU B2C distance sales (the seller invoices at 0% VAT under the special scheme for investment gold). For traders that opt into taxation in limited circumstances (e.g., industrial use), special invoicing and record-keeping apply. If you buy from a UK dealer post-Brexit, investment gold remains VAT-exempt in the UK as well; HMRC Notice 701/21 still governs domestic UK VAT for gold and sets procedures on imports/exports. Keep invoices and product certificates—if customs or a tax authority asks you to prove the exemption, you’ll need them.
Silver, platinum, palladium: subject to VAT
Unlike investment gold, silver, platinum, and palladium do not benefit from an EU-wide VAT exemption, so standard local VAT rates apply to most retail products (coins, bars). A few dealers use the margin scheme for second-hand silver, but for new bullion expect full VAT at your country’s standard rate. In practice, this adds ~19–25% to the ticket price depending on the Member State (see table below). That’s why many investors hold gold for portability and tax efficiency while using silver more tactically (or via non-EU storage where legal and practical). Check the standard rate in the country of supply (or destination under OSS rules) and factor it into your budget.
Country-by-country VAT rates
Below are representative standard VAT rates commonly applied to silver/platinum/palladium purchases (investment gold: VAT-exempt). Always confirm the current rate and any margin-scheme applicability with the seller.
| Country | Standard VAT (typical) | Notes |
|---|---|---|
| Germany | 19% | Standard rate; investment gold exempt. Taxation and Customs Union |
| France | 20% | Standard rate; gold exempt; special regimes may apply to antiques/collectibles. Taxation and Customs Union |
| Spain | 21% | Standard rate; Spanish LIVA defines investment gold; silver at 21%. Agencia Tributaria |
| Italy | 22% | Standard rate; gold exempt when qualifying. Taxation and Customs Union |
| Netherlands | 21% | Standard rate; gold exempt when qualifying. Taxation and Customs Union |
For the full EU rate grid and updates (rates do change), consult the Commission’s VAT rates resources and TEDB database.
What qualifies as “investment gold”
The devil is in the definitions. If you’re buying bars, verify purity ≥ 995 and an accepted weight. If you’re buying coins, confirm post-1800 minting, legal tender status, ≥ 900 purity, and typical pricing ≤ 180% of melt. Invoices should clearly state “investment gold – VAT exempt” and include the fine weight/purity. When shopping cross-border, ask the dealer to specify the legal basis (e.g., “Directive 2006/112/EC – Special scheme for investment gold”). UK dealers rely on HMRC Notices 701/21 and 701/21A, which also list qualifying coins. If a product is marketed as “semi-numismatic,” that says nothing about the VAT treatment—the legal definition controls.
Recognized gold coins list (EU/UK references)
The EU historically publishes coin criteria; Member States implement via domestic law. The UK maintains an official investment gold coin list and criteria in Notice 701/21A, covering Britannias, Sovereigns, and many foreign bullion coins. Action step: before buying a coin you don’t recognize, ask the dealer for (1) purity certificate, (2) legal-tender reference, and (3) the VAT Notice/Directive clause they rely on for exemption. Keep copies with your invoice for customs and resale.
Collectible/numismatic exclusion
Collectible coins often do not qualify as investment gold (despite being gold) and may attract VAT at the standard rate. Marketing terms—“rare,” “limited,” “heritage”—don’t change the Directive’s tests. Unless a coin meets the investment criteria or appears on the competent authority’s list, treat it as VAT-able. If you intentionally buy numismatics, ask about margin scheme treatment on resale and documentation (grading certificates, provenance).
VAT on silver, platinum, and palladium
Three realities: (1) Silver/PGMs are VAT-able in the EU; (2) VAT is levied at the local standard rate; (3) VAT magnifies your breakeven price. A 21% VAT on silver means you need a much bigger price move to get back to net-of-tax. Investors respond in different ways: some buy via non-EU storage (where legal/practical), some use the second-hand margin scheme where available, and some focus on gold for portability while using silver tactically (e.g., in countries with lower premiums). Across borders, the destination VAT can apply under e-commerce OSS rules—large dealers selling to EU consumers charge the buyer’s country rate once thresholds are exceeded. Always model the total landed cost, including shipping/insurance and any import VAT if buying from outside the EU.
Impact on pricing (21–25% cost increase typical)
At €25/oz silver, a 21% VAT adds ~€5.25/oz before premiums. With a €3 dealer premium, your out-the-door cost is €33.25—33% over spot—meaning your breakeven requires a large rally. For platinum and palladium, the arithmetic is similar but premiums differ. Use a spreadsheet to compare: (spot + premium) × (1 + VAT). Compare across Member States; rates vary but not by enough to justify complex arbitrage for small orders. Be extra careful with returns: if you re-import or switch sellers across borders, VAT treatment can get messy.
Cross-border arbitrage potential
Because VAT on silver varies only slightly across most EU states, arbitrage rarely pays after shipping, insurance, and compliance. However, margin-scheme second-hand silver in certain markets sometimes lowers the effective VAT component. Read the fine print: margin-scheme items usually can’t reclaim VAT and may have different resale dynamics. For larger orders, consider whether storing outside the EU (via reputable vaults) makes sense—balancing legal compliance, costs, and access.
Cross-border purchases within the EU
Since 1 July 2021, the EU runs a VAT One Stop Shop (OSS/IOSS) regime for cross-border B2C e-commerce. For goods (including bullion) shipped between Member States, the destination principle generally applies above low thresholds; sellers collect the buyer’s country VAT and declare via OSS. Investment gold supplies remain exempt, but silver/PGMs are subject to the destination rate under these rules. Practically: buying silver online from another Member State won’t magically avoid your home rate if the seller is compliant. The Commission’s OSS guidance confirms how distance-selling thresholds and VAT returns operate in practice.
If you move across borders with bullion, travel compliance matters as much as VAT.
Import from outside the EU (customs duties + VAT)
If you import metals from non-EU countries, customs will assess import VAT in the Member State of importation—typically where goods first enter the EU (Article 60 VAT Directive), unless under a suspensive procedure (Article 61). Duties may be nil on many bullion CN codes, but import VAT still applies (investment gold is generally exempt on import if qualifying). Always check TARIC for commodity codes and measures, and ensure invoices and certificates match the product to avoid delays. For small consignments, IOSS simplifies some flows; for higher values, standard customs clearance applies.
Practical implications for online purchases
For EU-to-EU deliveries of investment gold, you should see 0% VAT on the invoice. For silver/PGMs, expect your country’s standard VAT charged by a compliant seller under OSS. For non-EU imports, budget for import VAT at the border (plus clearance fees). Keep all invoices, transport docs, and certificates—these support both proof of VAT exemption (gold) and proper cost basis tracking for future capital gains tax.
Capital gains tax treatment
VAT is about purchase tax; capital gains arise when you sell at a profit. The EU has no single CGT regime—each Member State decides. Here are practical highlights for common investor hubs:
Germany: 1-year holding exemption (private sales)
In Germany, private disposals of “other assets” (including physical gold/silver) fall under § 23 EStG. If you hold > 1 year, gains are tax-free; if ≤ 1 year, gains are taxed at your individual rate (subject to a €1,000 annual de minimis since 2024, replacing the old €600 rule). Courts have extended the logic to certain physically deliverable gold certificates (e.g., Xetra-Gold) as private disposals when delivery is possible, though details matter. Keep acquisition and sale records to prove holding periods.
UK: CGT, but legal-tender Britannias & Sovereigns are CGT-exempt
In the UK, investment gold is VAT-exempt, but CGT applies on most bullion—except UK legal-tender coins (e.g., Britannias and Sovereigns), which are exempt from CGT for UK residents because they are sterling currency. Bars and non-UK legal-tender coins remain CGT-able above the annual allowance. If you are UK-resident and want CGT relief, coins minted by The Royal Mint with legal-tender status are the cleanest route.
France: flat levy on precious metals, or optional CGT with taper relief
France operates a flat levy on sales of precious metals (commonly referenced around 11–11.5% of the sale price including social contributions), unless you can elect into the capital gains regime with proof of acquisition and taper relief increasing over time (full exemption after long holding). In practice, many investors default to the flat levy when documentation is weak; serious holders keep impeccable records to opt for CGT when beneficial. Always check current rates and forms before selling in France.
Spain: progressive savings income CGT
Spain taxes gains on metals as savings income, with progressive rates. Recent official guidance shows bands around 19%–28% depending on the gain amount. For wealthier taxpayers, Spain also has Wealth Tax (and a temporary solidarity tax in some years), which includes precious metals in net assets. Keep invoices and proof of residence status, especially if you moved during the tax year.
Summary table (illustrative, not exhaustive)
| Country | CGT Headline | Key Notes |
|---|---|---|
| Germany | Tax-free after 1 year (private disposals) | § 23 EStG; gains within 1 year taxed; €1,000 de minimis per year since 2024. |
| UK | CGT except Britannias/Sovereigns (CGT-exempt) | Legal-tender coins are currency; bars/non-UK coins CGT-able. |
| France | Flat levy on precious metals or opt into CGT with taper relief | Documentation determines your choice; verify current rates. |
| Spain | Savings income rates (progressive) | Wealth Tax may include metals in net assets. |
Always confirm with a local tax adviser—rates, allowances, and elections change.
Reporting requirements
Even if VAT or CGT looks straightforward, reporting can trip up unwary investors.
When precious metals sales must be reported
EU Member States define thresholds and forms for reporting capital gains or flat levies (France), and some require documentation for AML reasons when dealing with high-value goods. For example, EU AML rules trigger due diligence when a dealer in goods handles cash payments ≥ €10,000 (single or linked transactions). Separate from AML, your income tax return needs cost basis and holding period evidence. Keep invoices, serial numbers, and payment proofs.
Anti-money laundering (AML) thresholds
Under Directive (EU) 2015/849 (4AMLD) and subsequent reforms, traders handling cash transactions ≥ €10,000 must apply full customer due diligence. The EU has also moved toward a Union-wide cash payment limit of €10,000 across goods trade in the upcoming AML package. Expect dealers to ask for ID, address, and source of funds for sizable purchases, even when you pay by bank transfer.
Cash transaction limits (€10,000 typical)
Beyond AML, some countries maintain lower national cash caps. Always ask the dealer which payment methods are allowed for the invoice amount. Assume that bank transfer is the norm for five-figure purchases; cash often triggers enhanced due diligence.
Dealer reporting obligations
Dealers may be obliged to file suspicious transaction reports and keep enhanced records. If you encounter KYC/AML questionnaires, they’re not optional. Provide documents promptly (ID, proof of address, and—in rare cases—source-of-funds). Expect stricter checks when buying large quantities or when shipping across borders.
Tax optimization strategies (legal)
You can reduce friction legally with straightforward tactics:
- Buy qualifying investment gold to avoid VAT altogether. Verify products meet the Directive’s criteria.
- Optimize holding periods where CGT relief exists (e.g., Germany’s 1-year rule for private disposals). Don’t flip bars within months if your goal is tax efficiency.
- Use legal-tender coins if you’re UK-resident to capture the CGT exemption.
- Document cost basis meticulously (invoice, premium, shipping, insurance) to keep your net gain accurate.
- Consider international storage for silver/PGMs if legal and practical, but model import VAT if you ever bring them into the EU.
Common tax mistakes
- Assuming all gold is VAT-exempt. Jewelry and non-qualifying coins incur standard VAT.
- Not tracking cost basis. Without invoices, you may default to unfavorable regimes (e.g., France’s flat levy).
- Ignoring holding periods. Selling in Germany inside 12 months can trigger income taxation under § 23 EStG.
- Chasing “no VAT” marketing that really masks margin-scheme caveats or non-EU storage constraints.
- Cash deals to “avoid tax.” AML rules make this risky and counterproductive.
Wealth tax and precious metals
A few European countries apply wealth tax that may include precious metals in the taxable base (e.g., Spain’s Impuesto sobre el Patrimonio). Switzerland (non-EU) levies cantonal wealth tax; while outside this guide’s EU scope, Swiss rules often feature in cross-border planning and are worth noting. If you hold sizable bullion, check if your residence country requires annual reporting of bullion value and how it should be valued (acquisition value vs market value) for wealth tax.
Brexit impact on the UK
Post-Brexit, the UK retains VAT exemption for investment gold (Notice 701/21) and maintains the investment coin criteria/list (Notice 701/21A). Imports from the EU into the UK are now treated as imports for VAT purposes; exports to the EU are typically zero-rated in the UK but are subject to import VAT when entering the EU (unless investment gold exemption applies). If you’re shuttling metals across the Channel, treat the movement like any other import/export for VAT and customs.
Professional advice: when you need it
If your situation involves multiple residencies, six-figure holdings, company-owned bullion, or inheritance planning, book time with a cross-border tax adviser. Laws change (VAT rates, CGT allowances, AML limits), and edge cases—like moving from CGT-exempt UK coins to a non-UK tax regime—deserve bespoke guidance. Use this guide to frame the questions, then confirm details for your exact facts.
Conclusion: EU precious metals tax checklist
- Gold: Buy only qualifying investment gold → VAT-exempt. Keep invoices and product certificates.
- Silver/PGMs: Budget standard VAT in the country of destination (OSS), and model breakeven.
- Cross-border: For imports, expect import VAT where goods enter the EU. Use correct CN codes in TARIC.
- CGT: Germany: tax-free after 1 year (§ 23 EStG). UK: Britannia/Sovereign coins CGT-exempt for residents. France/Spain: know your rates/elections.
- Reporting/AML: €10,000 cash threshold triggers CDD; expect KYC even for bank transfers on large orders.
- Wealth tax: Check your residence country’s rules (e.g., Spain); keep annual records.
Final thought: Tax rules shouldn’t scare you away from metals—but they should shape what you buy, where you buy, and how you document. Do the paperwork right, and your allocation will behave the way you intended: a durable store of value, not an administrative headache.
FAQs (quick references)
Is all gold VAT-free in the EU?
No. Only investment gold meeting Directive criteria (≥995 bars; qualifying coins). Jewelry/collectibles are VAT-able.
Can I avoid VAT on silver by buying online from another EU country?
Generally no. Under OSS, sellers collect the destination country’s VAT for B2C distance sales.
I’m German-resident—are my gold gains tax-free?
Yes, if held > 1 year in private assets; ≤1 year gains are taxable (with a €1,000 de minimis).
UK resident—are Britannias and Sovereigns CGT-free?
Yes. They are UK legal tender; CGT-exempt for UK residents. Bars and non-UK coins are not.
What documentation should I keep?
Invoices, purity certificates, serial numbers, shipping/insurance docs, and (for France) evidence of acquisition to opt for CGT over the flat levy.
When it’s time to liquidate overseas, start with our international selling guide.
