There's GOLD in Them There Tax Exemptions
- Sales Tax News
- Jul 17, 2015 | Gail Cole
If a little gold is good, more gold is better. That’s been the reigning philosophy surrounding precious metals, and it seems to be confirmed in a new Virginia sales tax exemption.
Beginning July 1, 2015, when the total sales price of a transfer of gold, silver or platinum bullion exceeds $1,000, the transaction is eligible for an exemption from Virginia sales and use tax.
All of the following conditions must be met in order for the sales and use tax exemption to apply:
- The gold, silver or platinum must be refined.
- The gold, silver or platinum must contain at least 90% gold, silver or platinum (or a combination of these).
- “The sales price of the item must fluctuate with and depend on the market price of the underlying precious metal, and not on the item’s rarity, condition, age or external factor. Bullion with a sales price that exceeds 120% of the value of the underlying precious metal will not qualify for the exemption.”
The gold, silver or platinum bullion must be in a form that meets the requirements outlined above: bars, coins, rounds or ingots. Jewelry and art are not eligible for the exemption, nor are items that contain other items (such as jewels) that add to their value.
Math skills required
The daily closing cash bullion price must be known and factored into each transaction if the exemption is being sought. For example, on a day in which platinum closes at $500.00 per troy ounce and bullion palladium closes at $150.00 per troy ounce, the following sale is exempt:
1 troy oz. platinum bar $530.00 (106% more than the daily closing price)
5 troy oz. palladium bar $745.00 (99% of the daily closing price)
Total sale $1,275.00
Virginia Department of Taxation in Tax Bulletin 15-6. This exemption is scheduled to expire on July 1, 2019.
Facilitate all areas of sales tax management by implementing an automated solution. Learn more.