Many of our customers ask us whether investment gold and silver is exempt from VAT in Hungary. You can buy and sell investment gold without any Value Added Tax in Hungary. Because Hungary is an EU member state and has fully implemented the EU VAT directive. The fact that investment gold is not subject to VAT makes trading of these goods more attractive and affordable to everyone. The reason for this is that VAT effects negatively the spread on the product. If you are interested and would like to read more about the most common terms concerning trade of precious metals please click HERE.
Silver on the other hand is not exempt from VAT in Hungary. This means unfortunately that you need to pay VAT on most of the silver products. Be aware that there is though one exception though. This exception applies to silver products that physical persons have sold back to us. To these items we can apply VAT margin scheme and means that you pay VAT only on our sales margin.
If you are interested and would to know more about VAT in EU you can read the EU VAT directive.
You can read more about the definition of investment gold HERE.
We hope we managed to answer your question whether investment gold and silver are exempt from VAT.
Does Tavex offer discounts on large gold and silver purchases you might wonder. Specially if thinking about bigger investment of precious metals. We can make you a special offer in case of larger orders.
For orders over HUF 36 000 000 please contact us via phone or e-mail to discuss even better prices.
One of Tavex’s core values is to provide products with competitive prices and low margins. This ensures that the products are also available to the wider public. Tavex is part of the Tavex Group which operates in 11 countries. We operate for example in in Denmark, Sweden, Norway, Finland, Poland, Bulgaria, Estonia, Latvia, Poland, Romania and Hungary. The Group is Northern Europe’s largest dealer of precious metals.
In addition to that, we partner directly with globally established investment gold and silver producers. Producers who supply us with gold bars are Valcambi (producer of one of our most popular products 100g Valcambi investment gold bar). Also PAMP who supplies us 100g PAMP investment gold bar.
Austrian Mint is a supplier of the 1 oz Austrian Philharmonic Gold Coin, which is an investment product which has gained popularity among our European customers. The Austrian Philharmoniker is a pure gold (24 karat/999) investment gold coin. The producer of this coin is Austrian Mint and the face value of the coin is 100 euros.
The Perth Mint is a supplier of the 1 oz Australian Kangaroo Gold Coin, which is an investment product with one of the most competitive margins. China Great Wall Coins Investments is also a significant supplier.
It is due to these reasons we are able to offer competitive prices and low margins on our products.
Before you start investing in precious metals, make sure you know the basics: what is spot, bid & ask, spread and premium?
The spot is the current market-clearing price of gold or silver that is set by factors of supply and demand in the global financial markets. The spot price refers to 1 troy ounce of .999 fine gold or silver.
The bid (or buy as a layman’s term) is the price at which market participants, such as Tavex, are ready to buy gold or silver at any given time.
The ask (or sell as a layman’s term) is the price at which market participants, such as Tavex, are ready to sell gold or silver at any given time.
The spread is the difference between the ask and the bid price. For example, if the bid for a 1 ounce Austrian Philharmonic gold coin is €1500 and the ask price is €1540 then the “bid-ask spread” is €40. A low bid-ask spread is often a good indicator of high liquidity. Products with high liquidity, such as the Gold Philharmonic coin, will have a lower bid-ask spread compared to other less well-known gold coins. This means that you, as an investor, will save money when trading in and out of your investment.
Every product that Tavex sells comes with a premium. A premium is added to cover the cost of the fabrication and distribution of the item. The premium is calculated by taking the price of a product minus the spot price of the metal. For example, if the current spot price of gold is €1520, and if Tavex sells a 1 ounce Gold Philharmonic for €1570 then the premium is €50.
We hope the main terms are clearer now for you – the basics: what is spot, bid & ask, spread and premium.
Another rather important question about the investment gold and silver is: what are the weight and purity measurements of precious metals?
Although the weight of gold and silver is sometimes quoted in kilograms or grams, the official weight measurement to gauge the mass of precious metals is the troy ounce. One troy ounce (oz) equals 31.1034768 grams. Note that a troy ounce is not the same as an avoirdupois ounce (more commonly known as the kitchen ounce). The latter equals approximately 28.34 grams.
The purity of gold and silver is measured in millesimal fineness, which denotes the purity of the metal in parts per thousand. For example, the PAMP 100 gram gold bar contains a gold fineness of 999.9, which means that the bar is 99.99% pure gold.
In addition to fineness, the traditional purity measurement of gold is the karat (K). The highest karat rating is 24 and this equals or is greater than 99.9% pure gold. Gold jewellery in Europe most often contains a gold purity of 14 and 18 karats. This equals 14/24 = 58.3% and 18/24 = 75% pure gold respectively.
We hope now you know more about the basics – what are the weight and purity measurements of precious metals?
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