Is There GST\/HST on Gold and Silver?<\/h2>\n
In Canada, qualifying investment-grade precious metals are exempt from GST\/HST. To qualify as a tax-exempt “precious metal” under the Excise Tax Act, a product must meet two strict criteria set by the CRA:<\/p>\n
- \n
- La puret\u00e9 :<\/strong> Gold and platinum must be at least 99.5% pure<\/strong>, and silver must be at least 99.9% pure.<\/li>\n
- Form:<\/strong> The metal must be struck as a bar<\/strong>, ingot<\/strong>, coin<\/strong>, or wafer<\/strong>. Qualifying coins must be issued by a recognized government authority.<\/li>\n<\/ul>\n
Bullion vs. Jewellery: The Tax Difference<\/h2>\n
![\"\"](\"https:\/\/vancouvergold.ca\/wp-content\/uploads\/2026\/08\/gold-bullion-and-jewellery.png\")
<\/p>\nBecause the CRA defines precious metals by both form and purity, standard gold jewellery is treated entirely differently than investment bullion.<\/p>\n
For example, 14K gold is approximately 58.3% pure – falling well short of the 99.5% threshold. Because it fails both the purity and form tests, jewellery is taxed as a standard retail purchase.<\/p>\n
\n\n
\n Product Type<\/b><\/td>\n Purity<\/b><\/td>\n GST\/HST Status<\/b><\/td>\n<\/tr>\n \n Gold Maple Leaf Coin<\/b><\/td>\n 99.99% (24K)<\/td>\n Exempt<\/b> (Zero-rated)<\/td>\n<\/tr>\n \n Silver Bullion Bar<\/b><\/td>\n 99.9%+<\/td>\n Exempt<\/b> (Zero-rated)<\/td>\n<\/tr>\n \n 22K Gold Bangle<\/b><\/td>\n 91.6%<\/td>\n Taxable<\/b> (Full GST\/HST)<\/td>\n<\/tr>\n \n 14K Gold Ring<\/b><\/td>\n 58.3%<\/td>\n Taxable<\/b> (Full GST\/HST)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n What Happens When You Sell?<\/h2>\n
When you sell bullion held as an investment, the profit is treated as a capital gain. If you sell it for less than your total cost, it triggers a capital loss.<\/p>\n
Your Adjusted Cost Base (ACB)<\/strong> is the figure used to calculate this difference. Your ACB includes the original purchase price, plus eligible costs associated with acquiring the asset (like dealer premiums and shipping).<\/p>\n
How Much is Taxable?<\/h2>\n
For Canadian individuals, the capital gains inclusion rate is 50%. This means only half of your net profit is added to your taxable income for the year. For example, if you realize a $5,000 capital gain on a gold sale, only $2,500 is added to your taxable income and taxed at your marginal rate.<\/p>\n
Investor vs. Business Trading<\/h2>\n
The 50% capital gains rate applies to individuals holding metals as a long-term investment. However, if you buy and sell metals frequently, the CRA may classify your activity as a business.<\/p>\n
The CRA looks at the frequency of your trades, the nature of your transactions, and your overall intent. If classed as a business, your profits are treated as business income and are 100% taxable. Active traders should consult a tax professional to clarify their status.<\/p>\n
Record-Keeping Checklist<\/h2>\n
Good record-keeping ensures you don’t overpay taxes when it is time to sell. Whenever you purchase physical bullion, save the following documentation to establish your cost and ownership history:<\/p>\n
- Form:<\/strong> The metal must be struck as a bar<\/strong>, ingot<\/strong>, coin<\/strong>, or wafer<\/strong>. Qualifying coins must be issued by a recognized government authority.<\/li>\n<\/ul>\n