Precious metals are subject to taxation in most countries, because of their high economic value. In most countries capital gains tax applies when precious metals are sold at a profit. Some countries also apply value added tax to precious metals.
In the European Union, the trading of recognised gold coins and bullion products is VAT exempt, but no such allowance is given to silver.
In the USA, due to section 9006 of the Patient Protection and Affordable Care Act, starting on 1 January 2012, IRS tax form 1099 will be required for all purchases of goods and services that exceed $600 per calendar year. This new reporting requirement will cover precious metals. As of July 2010[update], the bullion industry is fighting the regulation, and California Representative Dan Lungren has introduced legislation to have the relevant section of the Act reversed.[1]
| Country | VAT for silver |
|---|---|
| Finland[2] | 22% |
| Germany | 19% (bullions) 7% (coins) |
| Netherlands[3] | 19% |
| Slovenia | 20% |
| Russia | 18% |
| Sweden | 25% |
| Switzerland | 7.6% |
| United Kingdom | 20% |