Exemption ― investment gold and gold coins

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Exemption ― investment gold and gold coins
  • What is investment gold?
  • Investment gold coins
  • Investment gold coins Margin scheme
  • What supplies can be exempt from VAT?
  • Notifying HMRC
  • Opting to tax
  • Reclaiming input tax
  • Input tax partly attributable to exempt supplies
  • Invoicing
  • More...

Exemption ― investment gold and gold coins

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked theend of theBrexit transition / implementation period entered into following theUK’s withdrawal from theEU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across theUK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see theBrexit — overview guidance note.

This guidance note provides an overview of theVAT treatment of supplies of investment gold and gold coins. For supplies of non-investment gold see theSupplies of non-investment gold guidance note for more information.

See theFlowchart ― is thesupply of gold within thescope of UK VAT? for further assistance on determining thecorrect VAT treatment of thetransaction.

A special VAT scheme is applicable to supplies of investment gold. The scheme is intended to put investment in gold on a similar footing to 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. Since gold may be purchased from a variety of taxable sources before being transformed into investment gold, VAT may be incurred on thepurchase. If thenormal rules applied, theinput tax incurred on thecost of purchasing thegold would not be reclaimable and theseller would either have to absorb theVAT cost or pass it on to theinvestor which could make investing in gold less attractive. The investment gold scheme has three special features:

  1. certain persons may opt to tax specified transactions which will enable them to reclaim all of therelated input tax (subject to thenormal rules)

  2. VAT registered businesses can reclaim theinput tax incurred on purchases of gold and on thecosts of transforming any gold into investment gold

  3. VAT registered businesses who are

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