Economy and Investment

Investing in gold: what VAT applies ?

You want to invest in gold but you do not know the applicable taxation ? Gold has its own taxation and its subjection to VAT depends on several factors. In these lines, we will explain to you what is the VAT rate applicable on gold transactions.

WHAT TAXES ON GOLD ?

Taxes linked to the gold trade are governed by the general tax code. First of all, you need to know the difference between investment gold and other types of gold objects. Investment gold must have the following characteristics:

  • For gold bars: a minimum purity of 99.5%;
  • For gold coins : a purity of at least 90%, having been legal tender, minted after 1800 and whose part premium does not exceed 80%.

The main taxes concern the resale of investment gold:

  • Flat tax: 11.5% applicable at the time of sale. The tax may be collected by the purchasing establishment;
  • Capital gains tax: decreasing by 5% per year from the 3rdth year of ownership, the tax is 36, 2%. Capital gains tax requires proof of ownership.

You can choose between these two options.

WHAT ARE THE EXEMPTIONS FOR INVESTMENT GOLD ?

Article 298 sexdecies A of the CGI establishes the terms of VAT exemption for the purchase of gold investment . Compliant ingots and investment gold coins are therefore concerned as well as:

  • Deliveries, imports and acquisitions;
  • Services which fall within the scope of the above actions.

Depending on the VAT regimes of the participating companies, sexdecies B, C and D may apply.

Since 2019, investors who are subject to the IFI and who wish to acquire gold investment do not have to take into account the value of the investment in gold bars or coins in the calculation of the IFI.

For their part, non-residents who sell gold in France do not have to pay taxes (flat rates and capital gains).

Finally, all other transactions involving gold do not benefit from any exemption. Buyers must therefore pay VAT at the usual rate.

WHAT ARE THE INHERITANCE FEES FOR GOLD ?

You wish to pass on to your children gold bars or gold coins ? The inheritance includes investment gold ? The terms relating to inheritance apply. The heir children therefore retain a fixed allowance of 100,000 euros.

In the event of resale of the bars, inheritance taxes can be deducted from the capital gain. However, you must have a notary document in your possession. Otherwise, you will have to pay taxes.

Gold Union professionals are waiting for you in the agency or via the e-commerce site to answer all your questions. Purchase or sale, they will support you in your efforts.