Section 6: Special schemes

§ 25c Taxation of investment gold transactions

(1) The supply, importation and intra-Community acquisition of investment gold, including investment gold in the form of certificates relating to unallocated or allocated gold and gold traded via gold accounts, in particular also gold loans and gold swaps, through which title in or a contractual claim on investment gold is established, as well as futures and forward contracts executed with regard to investment gold in free circulation, which result in the transfer of title in the investment gold or a contractual claim on the investment gold, shall be VAT exempt. Sentence 1 shall apply accordingly to the negotiation of the supply of investment gold.

(2) Investment gold within the meaning of this Act is:

1. gold in the form of bars or wafers with a weight accepted by the gold markets and a purity of at least 995 thousandths;

2. gold coins with a purity of at least 900 thousandths which were minted prior to 1800, are or were legal tender in their country of origin and are normally sold at a price not exceeding the open market value of their gold content by more than 80 percent.

(3) The taxable person that produces investment gold or converts gold into investment gold may treat a supply, which is VAT exempt according to paragraph 1 sentence 1, as taxable, if it is made to another taxable person for the purposes of his business. The business which usually supplies gold for commercial purposes may treat a supply of investment gold, within the meaning of paragraph 2 number 1, which is VAT exempt according to paragraph 1 sentence 1, as taxable, if it is supplied to another taxable person for the purposes of his business. If a supply, in accordance with sentences 1 or 2, has been treated as taxable, the taxable person who negotiated this transaction may also treat the negotiation as taxable.

(4) By way of derogation of § 15 paragraph 2, the tax on the following transactions carried out for a taxable person, who executes VAT exempt transactions in accordance with paragraph 1, shall not be excluded from the input VAT deduction:

1. the supplies of investment gold by another taxable person who treats these supplies as taxable in accordance with paragraph 3 sentence 1 or 2;

2. the supplies, importation and intra-Community acquisition of gold, which is then converted into investment gold by him or for him;

3. supplies of services that result in the alteration of the form, weight or purity of gold, including investment gold.

(5) By way of derogation of § 15 paragraph 2, the tax on the transactions directly related to the production or conversion of gold that are carried out for a taxable person, who produces investment gold or converts gold into investment gold and subsequently supplies such gold VAT exempt in accordance with paragraph 1 sentence 1, shall not be excluded from the input VAT deduction.

(6) In addition to the obligation to keep records in accordance with § 22, the obligations of the Money Laundering Act regarding identification and the keeping and storing of records, shall apply accordingly to investment gold transactions.