Value Added Tax (VAT) is a tax found in many countries, albeit in different forms, but how does it apply to Gold and Silver in South Africa?
As a general rule only South African Legal Tender (i.e. Government Gazetted.) Gold coins have 0% VAT in South Africa. Even though an international Gold or Silver coin may have Legal Tender status in a different country, that coin will still attract the normal VAT in South Africa.
Therefore Silver coins, bars and medallions will have 15% VAT.
Here is a handy summary:
- Gold Krugerrands: 0% VAT
- Gold coins e.g. South African Mint Natura, Protea, Proof Krugerrands etc. : 0% VAT
- Gold Bars: 15% VAT
- Gold Medallions (Round pieces of Gold that are not Legal Tender): 15% VAT
- Silver Krugerrands / coins: 15% VAT
- Platinum Krugerrands / coins: 15% VAT
- Silver Bars: 15% VAT
- International coins such as US Eagles, Maples, Pandas etc.: 15% VAT
There is plenty of talk of Bullion 24 carat Gold, and Platinum bullion coins, but we will have to wait and see on these, and how VAT will apply.