The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of supplies of investment gold and gold coins. For supplies of non-investment gold see the Supplies of non-investment gold guidance note for more information.
See the Flowchart – is the supply of gold within the scope of UK VAT? for further assistance on determining the correct VAT treatment of the transaction.
A special VAT scheme is applicable to supplies of investment gold. The scheme is intended to put investment in gold on a similar footing with other financial investments, such as shares, by making it exempt from VAT. Businesses are normally unable to reclaim input tax directly attributable to an exempt supply. However, unlike shares, gold may be purchased from a variety of taxable sources before being transformed into investment gold, and as a result VAT will be incurred on the purchase. If the normal rules applied, the input tax incurred on the cost of purchasing the gold would not be reclaimable and the seller would either have to absorb the VAT cost or pass it on to the investor which could make investing in gold less attractive. The investment gold scheme has three special features:
The special scheme for investment gold also allows special procedures for transactions on the London Bullion Market. See the Trading
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