VAT on Silver

Anyone buying silver — whether as a bar, an investment coin or an industrial product — generally pays Value-Added Tax (VAT) in Ireland. This sets silver fundamentally apart from investment gold, which is fully exempt from VAT under the VAT Consolidation Act 2010 (Schedule 1) and EU Directive 2006/112/EC. For silver investors the difference matters in practice: the tax lifts the entry cost and therefore the break-even point on a later sale.

Standard rate and the margin scheme

In Ireland silver carries the standard VAT rate of 23% on the net purchase price. A simple example:

Net dealer price:      EUR 100.00
+ 23% VAT:             + EUR  23.00
─────────────────────────────────
Gross price (buyer):   EUR 123.00

Many dealers instead apply the margin scheme. Under it, VAT is charged not on the whole selling price but only on the trading margin (the difference between what the dealer paid and what the dealer sells for). The scheme is open to bona-fide traders who acquired the stock from private individuals or from other margin-scheme dealers. The effective tax burden for the end buyer then falls well below the headline rate, depending on the dealer's actual margin. A margin-scheme invoice must state that fact; a separate VAT figure may not be shown on it.

Silver VAT: an international comparison

*In Singapore, qualifying investment precious metals (including silver of at least 999 fineness) have been GST-free since October 2012; the general GST rate has stood at 9% since January 2024.

Lower-VAT jurisdictions such as Switzerland were once used as cheaper buying locations. However, importing silver coins into an EU state at the standard import-VAT rate has largely erased that former advantage for private buyers.

Which silver products are affected?

The 23% VAT applies to virtually every silver product:

• Silver bars (cast or minted, any denomination)
• Investment and bullion coins in silver (for example Maple Leaf, Vienna Philharmonic, Britannia, American Eagle)
• Numismatic collector coins in silver (the margin scheme may apply through a dealer)
• Industrial silver (granules, semi-finished goods)
• Scrap silver and broken silver in the commercial trade

By contrast, a private resale is outside the scope of VAT (a private individual is not a taxable person), as are certain exempt financial transactions where silver is treated as a financial instrument — a rare and contested case in practice.

Effect on the silver price and the premium (agio)

The spot price for silver (for example the current silver price in euro) is a net market price with no VAT. Dealers add their premium (minting costs, margin, logistics) on top of that price and then the statutory VAT. The silver surcharge caused by tax can be substantial relative to gold and feeds straight into your return: anyone buying silver and later selling it tax-free (private sales carry no VAT) is left carrying the VAT paid on purchase as a permanent cost.

The silver calculator works out the current material value, while the tax estimator helps gauge the overall tax load on buying and selling.

The margin scheme in practice — what buyers should know

1. How to spot it on an invoice: the invoice states the margin scheme applies, with no separate VAT amount shown.
2. No input-VAT recovery: businesses using silver for commercial purposes cannot reclaim VAT on a margin-scheme invoice.
3. Price comparison: a gross price of EUR 110 under the margin scheme can be cheaper than EUR 110 taxed at the full rate, because in the first case tax falls only on the margin.
4. Reselling: private individuals can resell margin-scheme coins tax-free (no VAT obligation), but should keep the capital-gains position in mind.

Why investment gold is treated more favourably

The EU gives investment gold a special standing because it is regarded as a near-monetary asset. Silver does not enjoy this status, even though it too historically served as a monetary coinage metal. For the investor the takeaway is clear: at the same spot price, gold can offer a better net entry level because no VAT inflates the purchase price.

Note: This article is not tax or investment advice. For your own tax questions, please consult a qualified tax adviser.

In brief

In Ireland silver is subject to the standard 23% VAT rate; the margin scheme can markedly reduce the effective tax for the end buyer. Unlike investment gold, silver enjoys no EU-wide VAT exemption — a factor investors should always factor in when buying silver and comparing true landed costs.