Commentary

701/21/18 Gold acquisitions, imports and investments

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/21/18 Gold acquisitions, imports and investments

Part V8 HMRC Notices | Commentary

701/21/18
Gold acquisitions, imports and investments

December 2018

This notice cancels and replaces Notice 701/21 (January 2013).

Overview

1.1 What this notice is about

Gold can be used for investment and industrial purposes. For investment purposes, gold is minted or transformed into coins, ingots, bars and wafers as a store of value and a hedge against inflation.

This notice explains how you should treat supplies, acquisitions and imports of gold and investment gold for VAT purposes.

It covers the following aspects—

Sectionexplains…
2—the criteria gold must meet to be treated as investment gold; and
—how supplies of it, which are normally exempt from VAT, should be treated.
3the need to notify us when you make exempt supplies of investment gold.
4the procedures to follow if you wish to opt to tax investment gold.
5how to reclaim input tax.
6the invoicing requirements for trading in exempt investment gold.
7how you should keep your records, and supplies by auctioneers and agents in respect of investment gold.
8how you must treat your importations and exportations of investment gold.
9how penalties are levied.
10that other supplies of gold will remain taxable at the standard rate, with the exception of certain transactions between central banks and transactions on the London Bullion Market.
11the special accounting scheme you must operate if you buy or sell standard-rated gold including investment gold.
12how you complete your VAT return, VAT 100.
13VAT registration.
14how to avoid buying smuggled gold.
15the list of weights accepted by the Bullion Market.
16the glossary of terms used in this notice.

2 Exemption for investment gold

Investment gold is exempt from VAT, subject to

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