VAT on Gold and Silver Bullion in the UK

Gold and silver are both sold by weight against a spot price, but the tax added at the till is completely different, and it is the single biggest reason a silver coin costs so much more than its metal is worth.

Gold: No VAT

Gold that meets the definition of investment gold is exempt from VAT in the UK. In broad terms that covers bars of at least 99.5% purity and coins of at least 90% purity, minted after 1800, that are or were legal tender in their country of origin and normally sell close to the value of their gold. Britannias, Sovereigns, Krugerrands, Maple Leafs and the ordinary cast and minted bars on this site all fall inside it. The price you see is the price you pay.

Silver: 20% VAT

Silver has no such exemption. New silver coins and bars are standard-rated, so 20% VAT is charged on the whole price, not only on the dealer's markup. A silver coin with a dealer premium of 8% over spot therefore reaches you at roughly 30% over spot once VAT is added. You do not get that VAT back when you sell, so silver has to rise much further than gold before a private buyer breaks even.

How Dealers Display Silver Prices

Dealers do not agree on how to show it. Some display the price including VAT. Others display it before VAT, with the tax added in the basket. Two dealers can look 20% apart when they are charging almost the same. Every silver price on this site includes VAT. Where a dealer shows an ex-VAT figure we add 20% and say so on the product page.

Second-Hand Silver and the Margin Scheme

Pre-owned silver can be sold under the VAT margin scheme, where VAT is due only on the dealer's margin rather than on the whole price. Margin-scheme silver is often noticeably cheaper than new stock of the same weight. It is a different offer from a new coin of a stated year, so we do not mix it into the same comparison.

VAT-Free Silver in Storage

Some dealers advertise silver with no VAT. This is silver held in a bonded or vaulted warehouse on your behalf. The VAT is deferred, not removed: it becomes due if you ever take delivery. These offers are not comparable with silver delivered to your door, and we leave them out.

Comparing the Two Metals

Because the tax treatment differs, premium over spot means something different for each metal. For gold it is the dealer's markup. For silver it is the markup plus 20% VAT. Compare gold with gold and silver with silver.

Check the Current Rules

This is a general explanation, not tax advice. VAT rules and rates change, and HMRC's guidance on investment gold is the authority. Check the current position, or ask a qualified adviser, before making a decision that depends on it.