VAT on Coins Gold/ Silver

[thesoundman]

Over here we pay VAT on Silver coins and bars but not Gold, however a Gold Sovereign is not pure gold so how does that work?

 

Is anything with a karat rating classed as gold and therefore you don't pay VAT even if it has other metals in it?

 

Can you tell I'm bored 

[silversword]

Gold coins and bars do not have VAT on them if they are suitable for investment. Pure gold bars qualify automatically as they are pretty much useless for anything else (they are supposed to be at least 995 fineness, which matters for VAT purposes).

 

HMRC state that to be VAT exempt, a gold coin must be of a purity of not less than .900; that it is or has been legal tender in its country of origin, and that it sells at a price that does not exceed 180 per cent of its spot gold content. A standard Sovereign qualifies on all counts (except if you buy the 'special' issues straight from the Royal Mint I suppose). An 18ct gold coin would technically be VAT-liable as the gold content is too low

[HawkHybrid]

so if rm overprices a gold coin to such a large extent, the price rises even higher

by being vat chargeable

 

HH

[garthy]

I believe our government regards silver as an industrial metal not a precious one, that's their excuse for charging us vat on silver and not gold. 

[Pete]

How silver can be described as a "precious metal" at current prices is a mystery.