Unlike gold investments, purchases of bars and coins made from silver, platinum and palladium are subject to VAT – with the rate in Germany, for example, now standing at 19%. The reason white precious metal investments attract VAT is that they are also widely used as industrial raw materials, whereas gold itself is classed as a pure investment product. For clarity, it must be added that this ruling applies to bullion gold, because VAT is still payable on purchases of gold jewellery. Until the end of 2022, German investors had the opportunity to buy silver coins under preferential differential taxation rules, but this tax advantage has now been withdrawn. However, investors can arrange to avoid paying VAT on silver purchases, provided those assets are then immediately delivered for storage in a Swiss duty-free warehouse.
This can be arranged via OrSuisse in Switzerland. In addition to classic domestic warehouse storage for investment gold, this private storage company also provides international customers with special storage solutions for silver investments held in duty-free warehouses. These transit warehouses can be used to store all kinds of goods for an unlimited period. There are no customs duties or VAT to pay during storage, and such payments only become due when the goods finally leave the warehouse for onward delivery. These high-security facilities are monitored by Swiss customs.
OrSuisse is a specialist provider of bank-independent storage of precious metals. Deposited precious metal coins and bars are held in allocated & segregated storage. This segregated storage offers many advantages over standard collective storage facilities. White metals are registered according to their bar or seal numbers in order to track the original goods which always remain the property of the client. In addition, the stored assets are fully insured against all risks.
Sell white metals with no physical movement of goods via negotiable warehouse receipts
Buying silver ex-VAT has other advantages too, because OrSuisse issues negotiable warehouse receipts for all precious metals delivered into storage. OrSuisse negotiable warehouse receipts are certified in accordance with the Swiss Code of Obligations, and so can be used exactly like securities. These tamper-proof documents incorporate a transfer (endorsement) field which can be used to mandate a simple transfer of ownership of the precious metals listed in the document.
Physical assets can be sold to a precious metals dealer, for example, with minimal effort. Coins and/or bars do not necessarily have to leave the duty-free warehouse, which then means the sale remains entirely VAT-free. Negotiable warehouse receipts can also be used to secure loans, or to obtain real estate financing. Furthermore, the document also acts as the registered owner’s guarantee that the goods can be released at any time.
In conclusion: Duty-free warehouses in Switzerland can compensate for the tax disadvantage of white metals by facilitating the ex-VAT purchase of silver investments. And thanks to OrSuisse negotiable warehouse receipts, physical precious metals become as flexible as gold securities.
