Is gold GST/HST-free in Canada?

Yes, for investment-grade gold. In Canada, gold, silver and platinum bars and coins that meet a minimum purity are sold without GST/HST. Many popular coins and most collector pieces don’t meet that purity, though, so the same ounce of gold can be tax-free in one product and taxed in another.

The rule

The federal Excise Tax Act defines a “precious metal” as a bar, ingot, coin or wafer of gold, silver or platinum refined to at least:

Sales of products that meet this definition are not charged GST/HST. The form matters as much as the purity: it has to be a bar, ingot, coin or wafer.

What is taxed

• 22-karat gold coins. The Krugerrand, the American Gold Eagle and the sovereign are 91.67% gold. They contain a full measure of gold, but they are below 99.5%, so GST/HST applies.
• Most vintage and collector coins. For example, the 1976 Olympic $100 gold coins (14 and 22 karat), the 1967 $20 gold coin (90% gold), sterling silver commemoratives (92.5%) and older 80% silver coins.
• Palladium, at any purity. It is not in the definition.
• Jewellery, whatever its karat, because it isn’t a bar, ingot, coin or wafer.
• Accessories such as capsules, tubes and storage boxes.

Same gold, different tax

A 1 oz Gold Maple Leaf and a 1 oz Krugerrand both contain one troy ounce of pure gold. The Maple Leaf is 99.99% gold, so it is sold without GST/HST. The Krugerrand is 22 karat, so GST/HST is added to its full price. If you are choosing between similar coins, purity can make a real difference to what you pay.

Which tax applies when it does

For taxable products, the rate is the one for the province or territory the order is shipped to: HST in the HST provinces, GST elsewhere, plus provincial sales tax where it applies.

Keep your invoices

Tax on the purchase is only part of the picture. If you later sell for more than you paid, the gain may be taxable. Keep your invoices: they show what you paid. See Tax treatment in Canada and the United States.