VAT-Free Silver: How It All Works and Why It Matters

The Spotlight

5 minutes read

Nov 9, 2023

PAMP Suisse VAT free 1 kilo silver bar, Lady Fortuna silver bar, and 1 oz Canadian Maple Leaf coin

Silver is hot right now, especially for those looking to diversify their investment portfolio. Moreover, our silver is VAT-free, helping you to save money and potentially grow your returns.

So you’re into buying gold? But have you thought about the benefits of buying VAT-free silver? 🤔

You’re not alone.

In most cases, you’ll need to pay VAT on silver which can put investors off.

But what if we told you about a way of buying silver VAT-free?

It doesn’t matter if you’re based in Ireland or Estonia, post-Brexit Britain or Europe. What if we could level the playing field for you?

Create “an equitable investment environment”? As experts would say…

Well, by buying VAT-free silver you could:

Here’s the lowdown.

Why is there VAT on silver?

A man using a binocular from behind a blue question mark

First, you will probably know by now that gold bullion is VAT-exempt. That’s because it’s mainly bought and sold as an investment 💰.

Silver, of course, is bought and sold on the precious metals market too. But silver is seen as a commodity 🛒.

Why? Well, there are loads of things it can do.

It’s highly sought-after in the tech world as it’s used in electronics. You’ll know that jewellers are keen on silver as well for making rings, bracelets, watches, and plenty of other things.

Indeed, silver is one of the world’s most commonly traded commodities.

That’s why it’s subject to VAT (Value Added Tax)💸, a tax most governments add to products and services.

Why buy physical silver?

  • It’s affordable Silver is an affordable precious metal compared to gold: you can buy more silver for the same price;
  • It’s in demand! Thanks to its use in green tech like solar panels, both industry and investors want silver. Demand grew by 18% in 2022 and a report by the Silver Institute says demand is expected to continue to increase "chiefly due to rising end-use in the green economy.
  • Great diversification option Silver, like gold, is seen as a protection against inflation and is often used as a way to diversify an investment portfolio.
  • Sustainable tech superstar As an adaptable metal, silver has some exceptional conducive and reflective properties which are key components in sustainable technology such as EVs and solar panels.

What does VAT-free silver mean?

VAT-free silver

Understanding the difference between VAT-free silver and regular silver purchases is crucial to your investment.

Silver is only VAT-free when it is kept in storage at a freeport. 🏭

As soon as you physically remove the silver from the freeport or have it delivered somewhere, it is subject to VAT.

That’s why it’s great for investments and savings. Buy vat-free silver from GOLD AVENUE, we’ll store it in a tax-free freeport for as long as you want, and then we’ll buy it back directly with 0% commission.

In short: you keep any profit made. All of it.

What is a freeport? And how are Swiss freeports different?

A freeport is a specially designated area located on the soil of a certain country but, for intents and purposes, is seen as being “outside” of the country.

✂️💲This allows duty and paperwork costs to be much lower. (Hence the financial incentives.)

Due to the development of international trade in the Middle Ages, free zones appeared in several European cities.

To idea was to encourage trade and the modern equivalent, a freeport, evolved from these zones.

The goal is still to encourage trade by offering tax and regulatory benefits.

Swiss freeports, like the one in Geneva, are massive storage facilities where goods can be held for years without paying import tax or duties.

In effect, a freeport here is a Swiss-sanctioned tax-free state.

So if you buy VAT-free silver, you do not have to pay any additional taxes on top of the purchase price as long as the products stay in the freeport and are for storage only. 👍

In short: VAT-free silver is really good for investments and savings.

So we do all the work – selling the silver, storing it in our freeport, buying it back with 0% commission – and investors or savers won’t pay any tax.

It’s a no-brainer.

Is it worth buying silver with VAT?

If you buy silver with VAT, you only make money if the price of silver goes higher than the cost of VAT.

For example, in the UK you will need to pay 20% VAT on silver. So a £100 coin actually costs £120. The price of silver would then have to rise more than 20% for you to make any money back on your coin.

What are the VAT rates for buying silver?

They vary across the world but VAT rates for silver are currently:

  • Italy has a VAT rate of 22% on silver 🇮🇹;
  • The UK has a VAT rate of 20% on silver 🇬🇧;
  • France has a VAT rate of 20% on silver 🇫🇷;
  • Germany has a VAT rate of 19% on silver 🇩🇪;
  • Switzerland has a VAT rate of 8.1% on silver 🇨🇭 ⚖.

Can you buy VAT-free silver in the UK?

Yes! With GOLD AVENUE, you can buy VAT-free silver coins and VAT-free Swiss-made PAMP® bars directly from the MKS PAMP refinery, which are then stored in a secure vault in a Swiss freeport.

As long as you sell your silver back to GOLD AVENUE, it will not leave the freeport, so it will be bought and sold without paying VAT.

How to buy VAT-free silver

At GOLD AVENUE, we’ve designed a unique solution that lets you buy silver with 0% VAT.

That means you will always get the best available price.

  • VAT-free silver Our VAT-free silver range means no VAT and low premiums, making investing accessible to all.
  • Free, secure storage We store all of our VAT-free silver products in our secure storage vaults in a Swiss freeport. Better still, it’s free for up to £8,500 of silver.
  • Instant resale As always we offer instant resale with no commission on our VAT-free silver.

Good to know…

  • Always check your country’s VAT rate. Most countries apply VAT as silver is considered an industrial product, find yours before you buy.
  • VAT can increase the price of silver. Buying silver with VAT means that the silver will have to increase by more than the VAT rate at which it is bought to make a profit as an investment.

What VAT-free silver products can I buy?

1 oz Noah’s Ark silver coin

At GOLD AVENUE, we have created an exclusive range of VAT-free silver products to buy.

We have a carefully curated collection of high-quality silver items that are exempt from VAT, including Swiss-made PAMP® bars that come directly from the MKS PAMP refinery 🏭 and the beautifully crafted 1 oz Fine silver coin - the Noah's Ark from Armenia.

With our commitment to quality craftsmanship and attention to detail, you can trust that each VAT-free silver product is crafted with precision and care.

Without the burden of additional taxes, we have made buying VAT-free silver available to everyone.


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