State to abolish VAT on purchase of investment gold?

The VAT on purchase of investment gold is expected to be abolished in late December, which will stimulate citizen savings in this precious metal, an increasingly more popular form of savings globally.

As Blic reports, the National Assembly will deliberate on amendments to the Law on the VAT, which proscribe, among other things, the abolition of 20% of the tax on purchase of the so-called investment gold.

In order for local standards to be harmonized with the EU standards, the implementation of a special tax procedure for the traffic of investment gold is considered, entailing the VAT's not being calculated, the Ministry of Finance says.

Experts claim that the VAT is the key reason why citizens of Serbia do not save by purchasing gold. They point out that the economic crisis has exposed the constantly dropping value of paper money. In Serbia, interest rates in banks have never been lower, amounting to an average of 1% for savings in euros.

The company Insignitus, which trades with gold, says that the value of gold has not changed since 2,600.

– It the past 20 years, the price of gold has been constantly growing. At the same time, paper money is mass produced, thereby losing its value – says Director Ljuba Jakic.

He emphasizes that Serbia is the only country in Europe to have the VAT on investment gold.

– Companies in our field in Croatia and Slovenia have developed a big business. We're talking profits reaching hundreds of thousands of euros a year. Serbian citizens buy gold there and deposit it in those countries, which means that money is escaping from our country due to the VAT, and there's smuggling as well.

Ministarstvo finansija Republike Srbije

Insignitus Gold d.o.o. Beograd

VAT on purchase of investment gold

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Law on the VAT

tax on purchase of investment gold

tax on traffic of investment gold

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investing in gold

interest rates in banks

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Ljuba Jakic

VAT on investment gold