Everything you need to know about the flat tax on precious metals

The TFMP, or Flat-rate Tax on Precious Metals, came into force with the publication of BOI-RPPM-PVBMC-20-10, incorporating the elements of article 150 VI of the CGI. Indeed, the general tax code lists objects, works of art, metals, antiques, jewelry and the taxation associated with their transfers and sales. This publication put a definitive end to the taxation of precious metals via the ISF, which also disappeared in 2018. 

From now on, precious metals such as gold, silver, platinum, scrap and investment currencies are subject to flat-rate taxation or capital gains tax. The RPPM PVBMC therefore specifies the contours of this application and indicates the rates in force.

Thus, this tax concerns:

• Jewelry made of gold, silver and other precious metals;
• Buy coins and ingots: gold leaf, wire, powder and other forms are also taken into account.

In fact, only pure gold or pure silver bars and coins minted after 1800, with or having been legal tender and with a purity greater than 90%, are eligible for this taxation. This new taxation is applicable to French residents, and not to foreign or European Union nationals.

The flat-rate tax on precious metals is payable in France, by any person transferring an object provided for in the law.

When selling a piece of jewelry or an ingot between individuals, the seller must declare the transfer of the property to the tax authorities via Cerfa 2091-SD. This declaration allows the State to collect the flat-rate tax due. On the other hand, if the sale of the investment piece takes place through a professional, the latter is responsible for the administrative arrangements and filing the declaration. The intermediary recovers the tax during the sale, then transfers the sum to the public finance center.

As for companies that sell to other companies, the profit from the sale enters the balance sheet. They are then taxed at the time of the corporate tax declaration.

It is, however, possible to avoid the flat-rate tax on precious metals if you make a declared donation, or during an authentic inheritance. Heirs are subject to preferential rates when reselling precious metals following an inheritance.

All these provisions also apply to antique collections, works of art and all categories provided for by the CGI.

You wish to sell your item ? You must pay the flat-rate tax upon sale. But what is its amount ? The CGI and BOI-RPPM-PVBMC-20-10 provide for a different flat rate depending on the item sold.

Thus, during the sale, the rate applicable for jewelry, art or collectibles corresponds to 6.5% of the price. However, if the amount of the sale is less than 5,000 euros, then you do not have to pay any tax.

On the other hand, the rate is higher when it comes to a precious metal. It is then 11%, to which is added 0.5% CRDS. On the other hand, unlike other types of goods eligible for the flat-rate tax on precious objects, the TFMP is applicable from the first cent.

In certain cases, you have the option of opting for capital gains tax. To do this, you must prove the date of acquisition of the property to the tax authorities. In fact, a reduction of 5% per year, from the third year, allows you to be completely exempt from this tax from 22 years of ownership. When selling, you choose the tax regime you prefer.

VAT is a tax that affects all products sold in France. It has different rates depending on the item, and certain sales may be exempt from VAT. This is the case, for example, with investment gold. Only bars and exchangeable coins enter this system. Jewelry and other products made in part with gold are, for their part, indicated with a price including tax. Therefore, all buyers are subject to VAT.

The authentic reference text is article 298 sexdecies A of the general tax code. The official bulletin published the terms of application in BOI-TVA-SECT-30-10. The tax administration indicates that gold purchases investment are fully exempt from VAT, and do not enter in taxation at the IFI. However, in the event of resale, you must pay TFMP or TPV. On the other hand, silver and platinum have other terms and conditions and remain subject to VAT.

Investment coins must therefore meet the eligibility criteria, just like bars, which also have conditions:

• Formal: only ingots, wafers or bars are eligible;
• Purity: minimum 95%;
• Weight: from one gram.

We can therefore summarize the Flat-rate Tax on Precious Metals as follows:

• It concerns investment gold: bars and coins;
• Payment takes place during the sale to a professional, or directly to the tax service, in the case of a transfer between individuals;
• Its rate is 11.5%: 11% flat-rate tax + 0.5% CRDS;
• It is not due upon inheritance or a declared gift: however, the selling heirs must still pay a tax.

You can buy and resell your gold at Gold Union, through one of our agencies or via our e-commerce site specializing in the purchase of silver  and gold. Make an appointment now so that an advisor can help you with all your steps. He will also be able to show you the range of investment coins and gold and silver bars.