VAT on silver in Switzerland
Why is silver taxed at 8.1% unlike pure gold?
At a glanceIn Switzerland, precious metals enjoy a globally competitive tax framework, but there is a strict legal divide between gold and white metals. While investment gold is completely VAT-exempt, physical silver delivered in Switzerland is subject to the standard 8.1% VAT. This guide details statutory provisions under the Swiss VAT Act and legal tax optimization.
Statutory Framework Under the Swiss VAT Act
The Swiss Federal Act on Value Added Tax (VATA / LTVA) creates two distinct categories:
- Article 18(2)(i) VATA: Full VAT exemption for investment gold bars (fineness ≥ 995‰) and state legal tender gold coins. Gold is treated as a monetary payment instrument.
- Silver, Platinum, and Palladium: Classified as industrial commodities. Any physical delivery or domestic transfer of silver bullion bars or coins within Switzerland incurs 8.1% Swiss VAT.
Comparative Tax Matrix: Precious Metals in Switzerland
| Metal | Asset Format | Swiss VAT Rate | Legal Basis | Tax-Free Storage Option? |
|---|---|---|---|---|
| Investment Gold | Bars (≥995‰) & official coins | 0% VAT | Art. 18(2)(i) VATA | Fully exempt everywhere |
| Gold Jewelry / Scrap | Jewelry, dental, workshop scrap | 8.1% VAT | Standard rate | No |
| Silver Bullion (Domestic Delivery) | Bars and coins shipped home | 8.1% VAT | Standard rate | No |
| Silver Bullion (Bonded Vault) | Bars stored in Swiss freeport | 0% VAT | Customs transit status | Yes (Zurich / Geneva) |
The Solution: Swiss Bonded Freeports (Zollfreilager)
To legally eliminate the 8.1% VAT surcharge, institutional and private investors hold physical silver inside Swiss bonded vaults (Zollfreilager) in Zurich-Embrach and Geneva Airport:
- Silver remains in an extraterritorial customs transit perimeter outside the Swiss fiscal territory.
- Purchases, sales, and allocated ownership transfers occur at 0% VAT.
- The 8.1% tax only triggers if the investor decides to physically export the silver out of the vault into domestic Swiss territory.
Frequently Asked Questions: Swiss Silver VAT
Can private individuals claim back the 8.1% VAT when selling silver?
No. VAT paid on retail purchases cannot be recovered upon private resale to a dealer, representing a permanent cost drag.
Do 1 oz silver coins like Austrian Philharmonics pay VAT?
Yes. All silver bullion coins delivered within Switzerland carry the standard 8.1% VAT rate.
Buy Investment Silver in High-Security Vaults
Buy and store physical gold in secure Zurich or Geneva vaults at direct live LBMA spot rates.