Investment metals supplies: These are supplies of goods where the supply involves the transfer of ownership or the right to dispose of specified chips, alloys, plates, or other identified or pieces of investment metals.
However, many transactions related to investment metals may not involve the transfer of ownership of those metals. Leasing or selling investment metals on a “generic” (non-specific) basis is allowed.
When metals are sold on this basis, the buyer has the right to possess a certain quantity of metals, and this quantity remains in the possession of the supplier. However, the buyer does not acquire ownership of any specific tangible goods. Therefore, sales of investment metals on a “generic” basis and their leasing are treated as supplies of services for VAT purposes.
Gold, silver, and platinum supplies in the Kingdom are subject to a zero percent tax rate. The zero percent rate applies to direct and explicit sales of investment metals, as well as any other form, including:
“Grants, waivers, or abandonment of any right, interest, or claim to any supply of investment metal if that right, interest, or claim constitutes a transfer of ownership of the goods or grants a right to it.”