Is gold and silver GST/HST exempt in Canada?
Usually, yes: a bar, ingot, coin or wafer of at least 99.5% gold or platinum, or 99.9% silver, is exempt. Jewellery, 22 karat coins such as the Krugerrand and Gold Eagle, and other low-purity items are taxable.
The short answer
Canada's Excise Tax Act defines "precious metal" as a bar, ingot, coin or wafer of gold, silver or platinum refined to the purities below, and counts it as a financial instrument, whose supply is exempt. If what you buy meets the definition, you pay no GST or HST on it, in any province.
| Metal | Minimum purity | Forms that qualify |
|---|---|---|
| Gold | 99.5% | Bars, ingots, coins, wafers |
| Silver | 99.9% | Bars, ingots, coins, wafers |
| Platinum | 99.5% | Bars, ingots, coins, wafers |
The Canada Revenue Agency adds that bars, ingots and wafers must generally be recognised and accepted for trading on Canadian financial markets, and that coins must be issued by a government authority and usable as currency.
What qualifies
- Gold Maple Leafs and Silver Maple Leafs, which are 99.99% pure.
- Stamped bars from recognised refiners, such as a 1 oz gold bar or a 10 oz silver bar of 99.9% silver.
What does not
- Jewellery, at any karat. 18k gold is 75% pure, far below the threshold.
- 22 karat bullion coins (91.67% gold), such as the Krugerrand and the American Gold Eagle, even though each holds a full ounce of gold.
- Sterling silver (92.5%) and pre-1967 Canadian silver coins (80%).
- Silver products between 99.5% and 99.9% pure. Silver needs the higher 99.9% standard.
- Palladium, which the definition does not include.
- Gold, silver or platinum in other forms, such as granules, even at full purity.
- For privately minted rounds and collector issues, ask the dealer how they treat the item: the CRA test for coins is that a government issued them as currency.
When you sell
Selling qualifying bullion is an exempt supply, so no GST/HST applies. Any gain may be taxable as a capital gain, or as business income if you trade often. Keep your purchase receipts.
Before you buy
- Check that the dealer's invoice shows no GST/HST on qualifying bullion.
- Compare the full price, including premium, shipping and payment fees, on the dealer comparison.
- For anything unusual, confirm the tax treatment with the Canada Revenue Agency or an accountant.