be familiar with taxation of precious metals is a key factor before any investment. gold service is here to provide you with the best service.
Tax and taxation of precious metals
Switzerland enjoys a favourable position in terms of taxation of precious metals. Thus, any purchase and/or sale will not be taxed, apart from VAT on metals like silver (Ag), platinum (Pt), or palladium (Pd). The only exception to this rule is the Ducat coin which, although it is made of gold, is subject to the Swiss VAT (7.7%).
FRANCE – French residents
Tax and Taxation on precious metals
A good understanding of the taxation system applicable to gold and more precisely to coins (minted after 1800) and investments ingots (fineness superior to 995‰) is necessary to any person who would like to position oneself in this market place.
Indeed, the French tax authority enables you to choose between two tax systems if you are a French resident:
- Flat-rate tax of 11.5% on the amount of the purchase or tax on precious metals – ‘TMP’(6.5% for jewels the value of which does not exceed €5,000)
- General tax regime of capital gains or tax on actual capital gains – ‘TPV’: 36.2% with a 5% discount per year (from Year 3 of holding onwards). You will then be exempt from any taxes from Year 22 of holding onwards.
Thus, according to your situation, you will be able to choose the most favourable tax system.
- You hold a gold ingot of 995‰ (or higher) fineness but you have no proof of purchase (invoice, bank receipt…) to prove the amount and date of the purchase. You will choose the flat-rate tax system of 11.5%. The professional will deduct the amount owed and will repay it to the French tax authority. The tax authority will not request any administrative operation.
- You hold a gold ingot of 995‰ (or higher) fineness and you are able to prove the date and amount of the purchase; in that case, it will make sense to assess which tax system is the most favourable.
Example: 1kg gold ingot
10-year period of possession
amount of the purchase: €20,000
amount of the sale: €38,000
added value: €18,000 (38,000-20,000)
Calculation of the tax on actual capital gains: 36.2% – (36,2% * ((10-2) years * 5%) %) = 21,72%
Amount to pay according to ‘TPV’: €18,000€ * 21,72% = €3,909.60
Amount to pay according to ‘TMP’: €38,000 * 11,5% = €4,237
In that case, the most favourable tax system for you will be the general tax regime of capital gains.
Official declarative forms:
Tax on precious metals or ‘TMP’: Form 2091-SD
The tax is payable at the time of sale or export. It is born by the seller but collected by the professional. Gold Service will repay monthly, to its reference tax office, all the taxes collected from individual sellers.
Tax on actual capital gains or ‘TPV’: Form 2092-SD
That tax, if it is chosen at the time of sale of your precious metals, shall be notified on Form N°2092. Gold Service will be pleased to help you with your declaration, fill in the documents, deduct the amount owed and declare all documents and payments to its reference tax office.
Taxation on the different precious metals: to ensure that you are making a good investment, you should examine which metal will be the most favourable. Thus, according to your budget and the information provided below, you will choose one of the four precious metals offered by Gold Service as an investment: gold (Au), silver (Ag), platinum (Pt), palladium (Pd). Please note that no tax (apart from VAT) is payable on the purchase.
VAT: gold is not subject to VAT unlike silver, platinum and palladium. Therefore, it is easier to get added value from gold than from the other metals.
Payment method: Gold Service accepts payment by credit card and/or bank transfer to the online shop and in its offices in France. You may pay in cash for an amount that does not exceed €1,000 (one thousand euros) in our offices in France.
TRAVEL WITH PRECIOUS METALS
Report requirements within the EU for everyone
Within the European Union, individuals shall declare to the Department of Customs their assets in gold, silver or any other precious metal with a value equal or greater than €10,000.
However, no change for gold purchased for commercial purposes or resale (this concerns all professionals in the gold sector): any purchase of gold must necessarily always be declared, whatever the amount, within the European Union.
Outside the EU, no customs declaration for any value below €300.
‘Export, import or transit of gold or any precious metals shall be subject to customs declaration when originating from or going to third countries outside the European Community or parts of the customs territory outside the fiscal territory’, state the Customs authorities.
Since December 1st, 2008, when a tourist enters the French territory after a stay in a country outside the European Union (EU), his/her purchases are exempt from any duties and taxes provided that the total amount is less than:
- €430 if you enter the EU by plane or boat and per traveller aged 15 and older;
- €300 for the other means of transport (train, car, frontier workers excepted) and per traveller aged 15 and older;
- €150 per traveller under the age of 15, whatever the means of transport.
Above those amounts, the tourist shall declare his/her purchases.
Regarding money, if the traveller has ingots or coins which are out of circulation, thus the standard VAT rate applies
If the coins are legal tender, those will be considered as currencies, and VAT does not apply.