Gold tax – everything you need to know!

Investing in the royal metal, i.e., gold, is becoming increasingly popular in Poland, and not only among the wealthiest investors and companies. Gold bars and bullion coins are also of interest to Poles who want to protect even small amounts of capital in times of inflation and economic turmoil. Why is gold worth investing in today? One reason that encourages investing in gold, including with Mennica Skarbowa, is that the buyer does not have to pay taxes. Want to know more? Details are provided later in this article!

Gold and VAT, or investing without settling up with the tax office!

Investment gold is very popular among small and large investors, as well as beginners and experienced investors, due to its VAT exemption. This means that the buyer of gold investment bars or gold bullion coins does not have to worry about paying a 23% tax to the tax office.

It should be emphasized that the tax exemption on the purchase of gold applies to both individuals and businesses, provided that several important conditions are met when investing in the royal metal. Check the details in the next part of our article or contact the advisors at Mennica Skarbowa!

Legal basis [Journal of Laws 2024.361, consolidated text]:

Article 122. [Exemption from tax on investment gold]

1. The supply, intra-Community acquisition, and import of investment gold, including investment gold represented by certificates for assigned or unassigned gold, or gold traded on gold accounts, shall be exempt from tax, and, in particular, gold loans and gold swaps involving ownership rights or claims relating to investment gold, as well as transactions involving investment gold in connection with futures and forward contracts resulting in the transfer of ownership rights or claims relating to investment gold.

2. The exemption referred to in paragraph 1 shall apply mutatis mutandis to services provided by agents acting on behalf of and for other persons, intermediating in the supply of investment gold for their principal. 

When is investment gold exempt from VAT?

In order to benefit from VAT exemption when purchasing investment gold, several important conditions must be met. These are as follows:

1. The gold purchased must be made of gold with a minimum fineness of 900 (physical gold in the form of bars or plates with a minimum fineness of 995; gold coins with a minimum fineness of 900).
2. The gold purchased must have been produced after 1800 (this applies to bullion coins).
3. The gold you buy must have legal tender status in its country of origin (this mainly applies to bullion coins).
4. Gold purchased in the form of bullion coins must be obtained at a price not exceeding 80% of the market value of the precious metal contained in the coin.

These rules mean that all other products made of gold with a fineness lower than 900 cannot legally be considered currency. Thus, they are not subject to the VAT exemption specified by the legislator. It is therefore important to be aware that gold jewelry, gold granules, unprocessed gold, and investment silver are products that help protect capital against the effects of inflation, but do not allow for VAT relief!

However, this is possible for all bullion coins and gold investment bars available for sale at the Mint.

Investment gold and income tax – gold and Belka's tax

Another tax to consider when purchasing investment gold is, of course, income tax. As with VAT, investors can count on a tax exemption. It should be emphasized that investment gold is not subject to the 19% Belka tax, i.e., capital gains tax! What does this mean in practice? No need to pay income tax after purchasing gold. Unfortunately, there is one important rule to keep in mind. Here it is:

If you want to sell gold bullion coins or gold investment bars within six months of purchase, you will be required to pay a 19% tax. This means that short-term investment in gold is not profitable. It is better to focus on long-term investments, at least six months! The Belka tax exemption applies to capital storage purposes, which, in simple terms, means securing it and simply saving it.

Income tax on gold and business activity

If you are an investor conducting business activity and your gold-related operations require you to pay income tax, you have the option of including the costs associated with its purchase in your tax-deductible expenses. This applies primarily to companies that settle taxes using revenue and expense ledgers. For details, it is of course worth consulting tax advisors or accountants.