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HMRC internal manual

VAT Gold

From
HM Revenue & Customs
Updated
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UK and EC Law

Investment gold including coins

 

Legislation Effect
   
EC legislation (Dir 2006/112)  
VAT Directive  
  • Articles 344 to 356 Provides EC vires for the exemption of investment gold  
      UK legislation  
      VAT Act 1994  
      * Schedule 9, Group 15 Exempts investment gold
      * Section 69A provides penalties for breach of VAT Regulations 1995
      * VAT Regulations 1995 (SI1995/2518)  
      * Regulation 31A Lists the invoicing, record keeping and notification requirements
      * Regulations 103 and 103A Give a limited right to deduct input tax
      * VAT (Investment Gold) Order 1999 (SI 1999/3116) Gives the right to opt to tax investment gold

Special accounting scheme

 

Legislation Effect
   
EC legislation (Dir 2006/112)  
VAT Directive  
  • Article 198 (2) and (3);
  • Articles 208 and 255. Allows Member States to introduce measures to combat fraud on gold supplies between taxable persons  
      UK legislation  
      VAT Act 1994  
      Section 55 Covers the scheme and also applies to supplies subject to an option to tax under the VAT (Investment Gold) Order 1999, Article 4 (SI 1999/3116)

Zero-rates

 

Legislation Effect
   
EC legislation (Dir 2006/112)  
VAT Directive  
* Article 198 (1) and (3);  
* Articles 352 to 353 Provides the vires for the UK to zero rate investment gold in the VAT (Terminal Markets) Order 1973.
Note: The vires for the Terminal Markets zero rate was a transitional derogation as part of the UK’s entry into the Common Market  
* Article 152 Exempts supplies by/to Central Banks
* Articles 169 to 170 Gives a right of deduction for Article 152 supplies
UK legislation  
VAT Act 1994  
* Section 50 Introduces the Terminal Markets Order
* Schedule 8 Group 10 Zero rates supplies by/to Central Banks
VAT (Terminal Markets) Order 1973 (SI 1973/173)  
* Articles 4-7 Concerns transactions in investment gold on the London Bullion Market