[CAF Note: Our 2nd Quarter 2022 Wrap Up looks at efforts in the United States to increase the liquidity of gold and silver. I asked Karine Solnon to take a look for us at what was happening in Europe.]
By Karine Solnon
Visuals by Titus de Feyter
I. Introduction
The European gold and silver retail market has seen no reduction of the tax burden in recent years. In fact, all trends point to the contrary.
To invest in gold or silver as a private investor, you need to build a global view.
- Understand the implications of taxation regulations, both when you buy, and when you sell.
- Know the rules of the game of the precious metals retail market itself: the customs, the different parameters influencing the price, the fees, the hidden costs, and the restrictions that may apply.
- Finally, understand what role gold and silver may play in the future economic system.
II. Gold and Silver Tax Regulations – Buying
The European market applies a particular type of indirect tax on all goods and services called Value-Added Tax (VAT). Its mechanisms are mostly identical for all the 27 members of the European Union (EU). The tax is transaction-based and proportional to the price of all goods purchased.