Spain - VAT and Gold of investment

I pray excento of VAT. The operations with investment gold allow to escape to the increase of the VAT in Spain. The European Commission ordered to that the gold will not suffer the changes in the VAT of Spain that it will affect to the region from July 1, 2010. The gold will be the only currency that will stay exempt from the tax.

The investment gold will not turn out to be affected by the increase of the VAT from July 1, 2010. The rules of the European Union on the payment of the Value-added tax (VAT) compare the investment gold to a currency and declare it exempt from this tax.

The European board 1998/80/CE of the Advice, which went out on October 12, 1998, by that the system of the Value-added tax was completed in Europe (VAT) and the Board 77/388/CEE was modified establishes several peculiarities on the tax and, with the object of favoring the use of the gold like financial instrument, he declares the investment golden deliveries exempt.

Before this determination, the investment gold was subject to the normal tax diet, and the investment golden deliveries were subject to the VAT in almost all the member states, although one had already authorized some states to consider them to be exempt with transitory character.

This way, there declare themselves exempt the procurement within the EC and the golden imports of investment, and for it the gold must be acquired in the shape of golden ingots or golden coins and have a purity of more of ninety-five thousandth for the ingots and of 900 for the coins.

VAT: special diet of the gold

This European Board takes as an object to complete the common system of the VAT in the European Community introducing a special diet for the gold.

ACT
Board 1998/80/CE of the Advice, of October 12, 1998, by that the system of the value-added tax is completed and the Board 77/388/CEE is modified: special diet applicable to the gold [Newspaper Official L 281 de 17.10.1998].

SYNTHESIS
With the object of favoring the use of the gold like financial instrument, the Board declares the investment golden deliveries exempt. Previously, the investment gold was also subject to the normal tax diet. By virtue of the same one, the investment golden deliveries were, in principle, subject to the VAT, although one had authorized some Member states, with transitory character, to consider them to be exempt. The new Board eliminates these competition distortions between Member states and reinforces at the same time the competitiveness of the common market of the gold.

Definition of the gold of investment:
* I pray in bars or plates of weight accepted on the markets of ingots, of an equal or top purity to ninety-five thousandth, represented or not for qualifications (the Member states can exclude from this diet the bars or plates of weight equal or lower than one gram);
* the golden coins of an equal or top purity to five thousandth, minted after 1800, which they have or have had legal currency in the fatherland and which usually sell to him at a price that does not overcome in any more than 80 % the value of the gold that they contain on the free market. Every year, the Member states will have to indicate what coins of these characteristics are commercialized in his territory. The lists will be published in the Official Newspaper.

The deliveries, procurement within the EC and golden imports of investment will be exempt from the value-added tax in the Member states.

Nevertheless, a taxation option is established when it is a question of golden deliveries of investment carried out to other passive subjects for:
* those who produce investment gold or transform gold into gold of investment (in this case, the Member states will have to establish the option right);
* passive subjects that, in the exercise of his economic activity, usually give gold for industrial uses (in this case, the Member states will be able to recognize the option right).

More informations:

Discharge PDF "1998/80/CE" of Lex Europa

European commission

05-07-2010

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