VAT on gold: what is exempt and what is not
Gold bought in the United Kingdom is either investment gold, which is exempt from VAT, or ordinary goods taxed at the standard rate of 20%. HMRC VAT Notice 701/21 draws the line. A bar or wafer qualifies if it is at least 995 thousandths fine and of a weight the bullion market accepts. A coin qualifies if it is at least 900 fine, was minted after 1800, is or was legal tender in its country of origin, and is normally sold for no more than 180% of the value of its gold. Jewellery never qualifies, however pure, and silver never qualifies at all. The calculator runs those tests on an item you describe, using the gold price in pounds from gold-api.com, with its time shown, for the 180% test. Gold by Carat is an independent site, not a gold buyer or a dealer, and this is not tax advice.
Example: VAT on this purchase
Exempt
Investment gold coin: 900 fine or more, legal tender, sold at no more than 180% of its gold
| Metal value | £729.47 |
| Price as a share of metal | 96.0% |
| Coin limit | 180% |
Figures and rules checked by the site’s publisher, Radif Partners · How the values are worked out · Editorial policy
The tests in HMRC VAT Notice 701/21
| Item | Conditions for exemption | VAT if not met |
|---|---|---|
| Gold bar or wafer | At least 995 thousandths fine; a weight accepted by the bullion markets | 20% |
| Gold coin | At least 900 fine; minted after 1800; legal tender in its country of origin, now or in the past; normally sold at no more than 180% of its gold value | 20% |
| Gold jewellery | Never investment gold | 20% |
| Silver, platinum, palladium | Never investment gold | 20% |
VAT Notice 701/21 is HMRC’s guidance on gold and VAT. Much of it explains how businesses that trade gold account for VAT, which does not concern private buyers; section 2 sets out what investment gold is. HMRC publishes a list of gold coins in HMRC’s list, last updated on 3 July 2026.
More detail below: tap a heading to open it.
Bars: fineness and weight
A bar must be 995 thousandths fine or more. Bars from accredited refiners are 999.9, so they pass easily. The weight must be one the bullion markets accept; the notice lists them in grams, kilos and troy ounces. A 1 g bar is investment gold; a 1 g novelty ingot of 9ct is not. The gold bar page lists the gram sizes and values each one.
Coins: the four conditions
Fineness of at least 900 thousandths rules out coins of lower gold content. Minting after 1800 rules out very old coins. Legal tender status is about the country of origin, not the UK: a Krugerrand qualifies because it is legal tender in South Africa. The 180% condition is about the coin’s normal selling price compared with its gold, so it is tested on the coin type, not on one sale. The calculator applies it to the price you type as a guide.
Jewellery and silver
Everything else carries VAT at the standard rate of 20%: rings, chains and bangles of any carat, silver bars and coins, platinum and palladium. The price in a UK shop already includes it. This is why silver bullion carries a much wider gap between buying and selling prices than gold: you pay VAT on the way in and get none of it back on the way out. The silver Britannia page shows the effect.
Reading a dealer’s price
Gold coins and bars from a UK dealer should be priced without VAT if they meet the tests, and the invoice should say so. Silver, platinum and palladium prices should include VAT; some dealers show prices before VAT on their lists and add it at checkout, so compare totals. When you compare a dealer’s price with the metal value on this site, use the price you will actually pay, VAT and delivery included, and the premium the calculator shows will be the true cost of buying.
Value a gold bar
Example: gold in a 100 g bar at 999.9
£9,961
No VAT on a bar of at least 995 fine in a weight the market accepts
| Per gram of fine gold | £99.62 |
To compare a bar with a coin, the sovereign page shows coin premiums, and the Capital Gains Tax page explains the tax on selling.