(Written from the perspective of a UK‑based bullion dealer – general information only, not tax advice.)

1. Short answer

• Gold bullion
  • Most investment‑grade gold (bars and many mainstream bullion coins) is exempt from UK VAT.
  • Certain non‑investment gold items (collectible, jewellery‑like, or non‑qualifying coins) can be subject to VAT.
• Silver bullion
  • Yes – silver bullion (bars and coins) is generally subject to UK VAT at the standard rate when bought in the UK, unless it qualifies for specific schemes (e.g. margin schemes for second‑hand silver).

Now let’s unpack what that really means in practical terms.

2. VAT basics for bullion buyers

VAT (Value Added Tax) is a consumption tax charged on many goods and services in the UK.

For precious metals:

• Gold has a special category called “investment gold”, which is VAT‑exempt.
• Silver, platinum, and palladium do not enjoy the same broad exemption and, in bullion form, are normally standard‑rated for VAT.

So, when you ask, “Is bullion subject to VAT?”, the real question becomes:

1. Does this particular product qualify as investment gold (and therefore sit in a special VAT‑exempt box)?
2. Or is it silver or non‑investment gold, which usually attracts VAT?

3. When is gold bullion exempt from VAT?

3.1 Definition of “investment gold” (the key VAT category)

Under UK rules (derived from EU law), investment gold includes:

1. Gold bars and wafers that:
   • Have a fineness of at least $995 parts per \1000 (minimum \99.5%$ purity), and
   • Are of a weight accepted by bullion markets (e.g. 1 oz, 100 g, 1 kg, etc.).
2. Gold coins that meet all of the following:
   • Fineness of at least $900 parts per \1000$ (e.g. 22 carat Sovereigns or 24 carat Britannias).
   • Minted on or after 1800.
   • Legal tender in their country of origin.
   • Traded at a price that does not exceed the gold value by more than a modest premium (i.e. they are genuinely bullion‑type coins, not primarily collectibles).

If a gold product meets these conditions, it is generally treated as investment gold and is exempt from VAT in the UK.

3.2 Common examples of VAT‑exempt gold bullion

As a UK dealer, the following are typically sold VAT‑free:

• Gold bars
  • 1 g, 5 g, 10 g, 20 g, 1 oz, 100 g, 250 g, 500 g, 1 kg bars from recognised refiners (e.g. LBMA‑approved), with purity of at least $99.5%$.
• Mainstream bullion gold coins
  Provided they meet the investment gold criteria:
  • UK Gold Britannias
  • UK Gold Sovereigns / Half Sovereigns
  • South African Krugerrands
  • Canadian Maple Leafs
  • American Gold Eagles (bullion issues)
  • Australian Kangaroo / Nugget, and many similar bullion series.

When you buy these products from a UK dealer:

• Your invoice usually shows no VAT charged on the gold itself.
• You pay the metal value plus the dealer’s premium and any shipping/insurance, but no VAT line on the gold content.

4. When gold can be subject to VAT

Not all gold products qualify as “investment gold”. Some gold items do attract VAT.

4.1 Non‑investment gold examples

Typical cases where VAT can apply:

1. Collectible or numismatic coins that:
   • Do not meet the legal tender or fineness criteria, or
   • Trade at a very high premium over their metal value mainly due to rarity or collectability (HMRC may treat these more as collectibles than bullion).
2. Gold jewellery and jewellery‑like items:
   • Rings, chains, pendants, etc., are standard‑rated for VAT when sold new by jewellers.
   • These are not investment gold under the VAT rules.
3. Some proof or commemorative coins:
   • Especially those marketed primarily as collectibles or with large premiums.
   • Depending on how they are classified, VAT can be applicable in some cases.
4. Novelty or non‑standard products:
   • Very small “gold notes”, medallions, or odd shapes that don’t fit the recognised bullion definition.

In practice, reputable UK bullion dealers:

• Clearly indicate whether a gold product is VAT‑exempt or VAT‑applicable.
• List most standard bullion bars and coins in the VAT‑free category.
• May have a separate section for collectibles / numismatics, where VAT or different tax treatment can apply.

If you are unsure, ask the dealer specifically:
“Is this item treated as investment gold for VAT in the UK?”

5. Is silver bullion subject to VAT?

5.1 General rule: yes, silver bullion is standard‑rated

Unlike gold, silver does not benefit from the investment gold VAT exemption.

For a UK‑based buyer:

• Silver bars (e.g. 1 oz, 100 g, 250 g, 500 g, 1 kg, larger bars) are subject to VAT at the standard rate.
• Silver bullion coins (e.g. Silver Britannias, Maples, Eagles, Philharmonics, etc.) are also subject to VAT at the standard rate.
• This applies whether the silver is in bar, coin or round form.

When you buy silver bullion from a UK dealer:

• The dealer must normally charge 20% VAT (or whatever the current standard UK VAT rate is on the date of purchase) on the full value of the goods (unless a specific scheme applies).
• Some dealers show VAT‑inclusive prices by default, others break out the VAT separately on the checkout or invoice.

So if you are asking:

“Is silver bullion subject to VAT in the UK?”

For an ordinary retail purchase in the UK, the practical answer is:

Yes – new silver bullion is usually sold with standard‑rate VAT applied.

5.2 Second‑hand silver & margin schemes

There is an important nuance: VAT margin schemes.

Under EU‑derived rules, when a dealer sells certain second‑hand goods (including second‑hand silver coins and bars) that were bought from private individuals or non‑VAT‑registered persons, they may use a margin scheme.

Under such schemes:

• The dealer pays VAT only on their profit margin, not on the full selling price.
• However, for you as a private customer:
  • You still cannot reclaim any VAT, and
  • You simply see a sale price (which might be more competitive than brand‑new VAT‑on‑full‑value transactions, but the underlying VAT mechanism is different).

The key point:

• Margin schemes do not remove VAT entirely;
• They change how VAT is calculated at the dealer level, which may slightly soften the impact in the final retail price for second‑hand silver.

6. Practical examples: what you’ll see on an invoice

To make this clearer, here are typical real‑world scenarios from a UK buyer’s standpoint.

6.1 Buying gold bars

You purchase:

• 1 × 100 g gold bar (999.9)
• 1 × 1 oz gold bar (999.9)

On your invoice:

• Line items for the bars (each with a price).
• VAT will be 0 on those lines (investment gold exemption).
• You may see VAT only on shipping or ancillary services if applicable, but not on the gold itself.

6.2 Buying gold Britannia coins

You purchase:

• 5 × 1 oz Gold Britannia 2025 coins.

On your invoice:

• Each Britannia is treated as investment gold.
• You pay the per‑coin price × 5, with no VAT added on the coins.
• Again, VAT might apply only to certain services, but not to the bullion gold content.

6.3 Buying silver Britannia coins

You purchase:

• 20 × 1 oz Silver Britannia coins.

On your invoice:

• Line for 20 coins with a subtotal.
• A separate line showing VAT at the standard rate (e.g. 20% of the taxable amount).
• Total payable = coins + VAT + shipping/insurance if any.

Result: Your silver purchase cost includes VAT, whereas your gold purchase does not (assuming both are bullion‑grade).

7. What if I’m buying from abroad or outside the UK?

7.1 UK‑based customers buying from a UK dealer, with UK delivery

• Gold investment bullion: VAT‑exempt.
• Silver bullion and non‑investment gold: VAT‑standard‑rated.

This is the baseline case we’ve been discussing.

7.2 Overseas customers buying from a UK dealer (export)

If you live outside the UK and buy from a UK dealer with direct export to your overseas address:

• Investment gold remains VAT‑exempt in the UK.
• Silver and non‑investment gold:
  • May be zero‑rated for UK VAT if they qualify as exports under UK VAT law,
  • But can be subject to import VAT, duties, or other taxes in your own country.

So for an overseas customer:

• You may avoid UK VAT on exported silver, but
• You are likely to face local import VAT or customs charges when the parcel enters your country.

Each jurisdiction has its own rules, so overseas buyers should check local regulations.

7.3 UK resident buying from overseas dealers

If you, as a UK resident, order bullion from an overseas dealer (e.g. in the EU):

• The transaction may be subject to import VAT and/or customs handling charges when the parcel arrives in the UK, especially post‑Brexit.
• The fact that no foreign VAT is charged upfront does not mean the purchase is VAT‑free overall; it often just shifts the tax collection to the UK border.

In other words:

• You might avoid paying foreign VAT,
• But UK import VAT and fees can still apply.

For significant orders, it is essential to calculate the all‑in delivered cost, including any import VAT and carrier brokerage fees, before deciding that an overseas purchase is “cheaper”.

8. Why is gold treated differently from silver for VAT?

This often puzzles new investors. The difference comes from deliberate policy choices.

8.1 Policy rationale

• Gold is widely recognised as a monetary asset and long‑term store of value.
• To support gold’s role in the financial system and encourage its use as an investment, many countries, including the UK, have zero‑rated or exempted “investment gold” from VAT.

By contrast:

• Silver is viewed more as a commodity and industrial metal than a purely monetary asset.
• As such, standard VAT treatment generally applies to silver in most jurisdictions.

The result is a structural tax difference:

• Gold investors in the UK can buy bullion without VAT, which is a major advantage for long‑term holders.
• Silver investors effectively pre‑pay 20% VAT on top of the metal value when buying new silver in the UK.

9. How VAT impacts investment decisions in bullion

When you ask, “Is gold and silver bullion subject to VAT?”, you’re really asking:

“How much of my capital will be lost immediately to tax when I buy, and how does that affect my returns?”

9.1 Impact on gold

• Because most investment‑grade gold bullion is VAT‑exempt, 100% of what you pay goes into the gold price plus dealer premium, not into VAT.
• This makes gold:
  • More efficient for shorter‑term and medium‑term investment horizons.
  • Easier to justify as a liquid store of value, as there is no immediate VAT drag to recover.

9.2 Impact on silver

• With silver, you typically pay 20% VAT on top of the net price.
• For the investment to “break even”, the silver price must rise enough to cover that VAT (plus the dealer premium and bid/ask spread) if you plan to sell back to a dealer.
• This can make silver:
  • More suitable for investors with long time horizons who are bullish on silver’s potential.
  • Less efficient for traders or those who may need to liquidate quickly.

9.3 Second‑hand silver and VAT‑efficient approaches

Some UK investors try to mitigate the VAT impact on silver by:

• Prioritising second‑hand silver coins/bars sold under margin schemes (potentially slightly better net pricing).
• Considering overseas storage solutions or trading via VAT‑free jurisdictions or platforms (although this introduces complexity, storage costs, and risk, and often is only justified for larger portfolios).

Even so, from a simple UK retail perspective:

• New silver bullion is strongly affected by VAT.
• Gold bullion is not.

10. Summary: is bullion subject to VAT or not?

Bringing it all together in a concise form:

1. Gold bullion in the UK
   • Investment‑grade gold bars ($\ge 99.5\%$ purity, accepted weights) and qualifying bullion coins (e.g. Britannias, Sovereigns, Krugerrands, Maples, Eagles, etc.) are generally treated as investment gold and are exempt from VAT.
   • Certain gold items that do not meet investment gold criteria (some proofs, collectibles, jewellery‑like items, highly numismatic coins) can be subject to VAT.
   • Always check product descriptions or ask the dealer: “Is this item VAT‑exempt as investment gold?”
2. Silver bullion in the UK
   • Yes, silver bullion is normally subject to VAT:
     • Silver bars,
     • Silver bullion coins,
     • Generic silver rounds.
   • UK dealers usually must charge standard‑rate VAT on new silver sales to UK customers.
   • Second‑hand silver may fall under margin schemes, changing how VAT is calculated but not removing it from the system.
3. Cross‑border considerations
   • Exports from the UK to overseas customers may be zero‑rated for UK VAT, but local import VAT/duties usually apply in the destination country.
   • UK residents buying from overseas dealers can still face UK import VAT and charges when the goods are brought into the country.
4. Investment implications
   • Gold: no VAT on qualifying investment bullion; more efficient for many UK investors.
   • Silver: subject to VAT; investors must factor this in when projecting returns and planning holding periods.