Silver and VAT: What Buyers and Sellers Need to Know

The short answer first

Yes, VAT is virtually always charged when buying silver — generally 19% on the full purchase price. The previously widespread option of paying significantly less via differential taxation has, since early 2025, become essentially a thing of the past for newly traded goods.

Looking to buy silver? Current prices for silver bars and coins can be found in our online shop. We explain in detail why gold is treated differently for tax purposes than silver in our article Why Is Gold Tax-Free and Silver Isn't?

Why isn't silver exempt from VAT like gold?

The reason lies not in the physical properties of the metals, but in their legal classification. Investment gold is treated EU-wide as a money-like store of value and is therefore exempt from VAT under Section 25c of the German VAT Act (UStG). Silver, on the other hand — despite its role as an investment metal — is treated for tax purposes like an ordinary industrial-character raw material and is therefore subject to the standard rate of 19%. We've already covered the details and historical background of this distinction in depth in our article Why Is Gold Tax-Free and Silver Isn't? — here, we focus on what this rule practically means for you as a silver buyer or seller.

What was differential taxation — and why has it nearly disappeared?

Differential taxation under Section 25a of the German VAT Act (UStG) was originally designed for the classic second-hand goods trade — for example, antiques or used vehicles. The idea behind it: if a dealer buys goods from a private individual who cannot show VAT, it would be unfair to tax the full price on resale. The dealer is therefore only required to pay tax on their margin — the difference between the purchase and sale price — in this case.

For silver coins, this rule was used for years in a way the legislature had not originally intended:

In its letter, the Federal Ministry of Finance argued that not every silver coin automatically qualifies as a "collector's item" within the meaning of the VAT Act — meaning the simplified taxation could no longer be applied. The so-called "Poland route", through which some dealers revived differential taxation from 2023/2024 by artificially treating freshly minted coins as second-hand goods, was finally closed off as of 1 January 2025.

Does differential taxation still apply in exceptional cases today?

Two situations remain legally possible, but play hardly any role for most buyers anymore:

• Old stock from before 2025: silver coins that a dealer had already imported under differential taxation before 1 January 2025 may continue to be sold under differential taxation for as long as they remain in stock. This stock naturally runs down over time.
• Buy-back from private individuals: if a dealer buys silver — such as old cutlery, jewellery or coins — directly from a private individual and resells that exact same item unchanged, differential taxation applies indefinitely. This is the original, classic use case of the law.

Important restriction for dealers who melt items down: this second exception requires that the same item that the dealer purchased is resold. If a dealer instead processes purchased old silver further — melting it down and having new bars or coins minted from it — this legally creates a newly manufactured product. Differential taxation no longer applies to this, regardless of the fact that the original material came from a private individual. This is a plausible explanation for why providers with such a melting-and-re-minting business model offer their entire silver range uniformly at the standard 19% rate, without exceptions for individual products.

What does this mean in practice when buying?

At Geiger Edelmetalle, the standard 19% VAT rate applies consistently to silver bars and coins — with no differentiation by product or origin. At first glance, this may seem less attractive than a supposed differential-taxation offer elsewhere, but it has a practical advantage: price clarity without surprises. Especially since the tightened legal situation from 2025, it's worth taking a close look at offers still advertising differential taxation — reputable dealers should be transparent about whether it's genuinely a case of dwindling old stock or a permissible individual private buy-back case.

Can you still buy silver without VAT at all?

Currently, the only way to directly and permanently avoid VAT when buying silver is through a customs-free warehouse: as long as the silver remains stored there, no VAT is charged — unlike with a conventional purchase delivered to your home. We explain in detail how this works, what costs are involved, and who it's worthwhile for, in our article Customs-Free Warehousing for Precious Metals: Advantages, Costs and Drawbacks.

Buying silver abroad — a legal way to avoid VAT?

A common misconception is that buying abroad is automatically possible without VAT. That's not accurate: within the EU, a personal purchase brought back home doesn't incur additional import VAT, but you still pay whatever tax the foreign dealer is required to charge under their own national law — that's simply a different legal situation locally, not a loophole. Whether an offer abroad is actually cheaper depends on that provider's specific pricing and tax structure, not on some general "VAT trick".

What applies when selling silver?

For sellers, the situation is simpler than the search query "sell silver VAT" might suggest: as a private individual, you don't need to worry about VAT at all. VAT applies only to commercial transactions — when you sell your silver to a dealer, you yourself do not charge VAT and don't need to remit any. As described above, the tax question of differential taxation concerns exclusively the dealer's side and their resale.

If you want to sell old silver — such as cutlery, jewellery or coins — you'll find the practical process in our article Selling Gold: Where Do You Get the Best Price? or directly through our old gold buy-back service, which also covers silver, cutlery and silverware.

Gold and silver: a tax comparison

Summary

The VAT difference between gold and silver isn't a temporary exception, but firmly anchored in the VAT Act — and the former differential taxation scheme, which used to at least soften this disadvantage for silver coins, has been essentially history for newly traded goods since 2025. Anyone buying silver today should factor in the full 19% rate and specifically consider the one remaining legal advantage route — the customs-free warehouse — if larger quantities are planned. At Geiger Edelmetalle, we offer both transparent, consistently taxed silver products in our online shop and the option of tax-free storage in a customs-free warehouse — feel free to reach out if you're unsure which route suits your plans.

Frequently asked questions

Why isn't silver exempt from VAT like gold?
Investment gold is legally treated as a money-like store of value and is therefore tax-free under Section 25c UStG. Silver, on the other hand, is treated like a regular raw material and is subject to the full 19% rate.

Can you still buy differentially taxed silver?
Only in exceptional cases: with dwindling old stock that a dealer imported before 1 January 2025, or with the unchanged resale of individually purchased private items. If the material is melted down and re-minted, this exception no longer applies.

Do I have to pay VAT when selling silver?
No, as a private individual you are not subject to VAT. VAT only applies to the dealer's commercial resale, not to your private sale.

How can I buy silver without VAT?
Currently only by storing it in a customs-free warehouse — as long as the silver remains there, no VAT is charged. Buying abroad, by contrast, is not a reliable way to avoid German VAT.