Why Is Investment Gold VAT-Free?

The VAT exemption is designed to:

• Encourage investment in gold as a financial asset.

• Prevent distortion in the gold market due to uneven tax treatment.

• Align gold with other investment instruments like stocks or bonds, which are also typically VAT-exempt.

This approach was standardized in the EU under Directive 98/80/EC and has been adopted in similar forms in other global markets.