Buying Gold and Silver: What You Need to Know About Sales Tax

People who want to invest in gold or silver usually think first of capital appreciation, crisis resilience, or long-term wealth preservation. Precious metals are growing in popularity, partly because their value has risen rapidly in recent times. But when it comes time to buy, a key tax question arises: Is VAT applicable when purchasing precious metals?

The answer is clear—but differs for gold and silver. In this article, you’ll learn what you need to know about VAT when buying precious metals and what tax considerations apply when selling them.

Buying Gold – Generally VAT-Exempt

The purchase of physical gold is exempt from VAT in Germany and throughout the EU under certain conditions. This has been the case since 1993 and EU-wide since 2000.

These conditions must be met:

• Gold bars: Minimum fineness of 995/1000
• Gold coins:
  • At least 900/1000 fineness
  • Minted after the year 1800
  • Once or currently authorized as legal tender in the country of origin
  • The selling price may not exceed 80% of the pure gold value

Tip: If you purchase your gold coins or bars from a reputable dealer, you do not need to verify these criteria yourself. Common investment coins such as the Krugerrand, Maple Leaf, or Vienna Philharmonic meet all requirements and are exempt from VAT.

Buying Silver – VAT Liability with Special Considerations

Unlike gold, the purchase of silver is generally subject to VAT. The standard sales tax rate of 19% applies to silver bars and most silver coins.

Special feature: Margin taxation for silver coins

Many dealers apply what is known as differential taxation when selling silver coins. In this case, VAT is not levied on the entire sales price, but only on the markup (the difference between the purchase price and the sales price). This results in a significantly lower tax burden—usually comparable to the former reduced tax rate of 7%.

Important for investors: Silver bars are always subject to full sales tax—silver coins can be more affordable if they are subject to differential taxation.

Income tax on the purchase and sale of precious metals?

In addition to sales tax, the question of income tax is also of interest to investors—especially when selling gold or silver at a later date.

Here is how the tax treatment works:

• No ongoing income tax: Since gold and silver do not generate interest or dividends, no taxes are incurred during the holding period.
• Sale after 12 months: tax-free
  Profits from the sale of physical gold or silver are tax-free after the one-year speculation period has expired (Section 23 EStG).
• Sale within 12 months: taxable
  In this case, the profit must be reported on your income tax return.
  A tax-free allowance of €600 per year applies—for all private sales combined.

Example:
You sell gold bars within 10 months for a profit of €700. Since the €600 exemption limit has been exceeded, the entire profit is taxable, not just the amount exceeding the limit.

Alternative: Investing via Securities

If you are aiming for short-term price gains, investing in gold ETFs or other securities may be an alternative. In this case, the flat-rate withholding tax applies upon sale, though it is often easier to calculate and is automatically withheld.

But be careful: Securities are subject to different risks than physical precious metals—seek advice if in doubt.

Conclusion: Structuring precious metal purchases correctly for tax purposes

Anyone investing in gold and silver should not only consider price trends and storage—but also the implications for sales and income taxes. The tax-free treatment of investment gold is attractive, while for silver purchases, differential taxation is the most favorable option for many investors.

When selling, compliance with the one-year holding period is crucial to realizing the profit tax-free. For larger investments, regular trading, or family asset transfers, individual tax advice may be advisable.

As experienced tax advisors in Düsseldorf and Oberhausen, we support you in optimizing the tax planning for your precious metal investments—whether for personal or business purposes.

Contact us before you invest—and benefit from our expertise.