For institutions holding physical gold, tax can make a real difference to the outcome. Understanding jurisdictional differences in VAT, capital gains and import/export duties is useful background before buying, storing or selling.
VAT on Investment Gold: Mostly Exempt, But Not Always
Across the EU, investment-grade gold is generally VAT-exempt, provided it meets purity thresholds (e.g., 99.5%+ for bars). Switzerland, which is outside the EU, also generally exempts investment gold from VAT.
However, silver and other precious metals often do not benefit from this exemption and may be taxed at standard VAT rates, depending on the country. In the UAE, investment gold that meets the purity conditions is generally zero-rated for VAT. Rules change, so check the current position with an adviser.
Capital Gains Tax: Depends on Who You Are — and Where You Are
- UK: Gold held as legal tender coins (e.g., Britannias) is exempt from CGT, but bars or non-UK coins may be taxable.
- US: Gold is treated as a collectible, with a 28% maximum federal capital gains tax — higher than standard equities.
- Germany: Private investors pay no CGT if gold is held for over one year, but corporates may be taxed differently.
- UAE: Individuals generally pay no personal income or capital gains tax, but companies may be subject to UAE Corporate Tax — so the answer depends on the holder.
For institutions, local tax residency and structure (e.g., trust or company) will define liability. Tax treaties can also affect how gains are taxed when metals are sold abroad and proceeds are returned.
Import Duties and Cross-Border Movement
Movements of physical gold between countries can be subject to customs rules that vary by jurisdiction. Importing metals into jurisdictions like India or China can trigger hefty import duties — sometimes exceeding 10%.
Jurisdictions such as Dubai are major trading hubs for physical gold. EONA does not currently offer delivery or cross-border movement of metal.
Storage Location and Tax
Institutions often treat vault location as a legal and tax question, not just a logistical one. But where metal is stored does not by itself decide how the owner is taxed. Things to discuss with an adviser include:
- How your home jurisdiction taxes gains on assets held abroad
- Any reporting obligations for assets held abroad
- VAT or duty on purchase, storage fees and sale
With EONA, all metal is stored with Loomis in Dubai. Zurich and Singapore are planned locations (coming soon) and are not currently available.
What about EONA?
EONA does not provide tax advice. What we provide is clear records: invoices and transaction history for purchases and sales, and details of where your metal is stored — with Loomis in Dubai. Storage fees carry 5% VAT; see our Fees & Spread page.