Are you a taxpayer subject to VAT and involved in trading investment gold?
Discover why issuing invoices and maintaining meticulous records of your investment gold activities, including transactions with other individuals, is an absolute must!
When it comes to purchasing gold, some buyers may have concerns about maintaining their anonymity. Gold has long been associated with privacy and confidentiality due to its intrinsic value and the potential for discreet ownership. However, in today’s increasingly regulated and transparent financial landscape, buyers are often curious about whether they can retain their anonymity when acquiring this precious metal. In this article, we will explore the key factors that buyers need to consider and the extent to which one can remain anonymous while buying gold. Unravel the mysteries surrounding gold transactions and find out how to strike the perfect balance between confidentiality and compliance in your gold acquisitions.
Namely, the taxpayer subject to Value Added Tax (VAT) who engages in the trading of investment gold is obligated to issue invoices for the transactions involving investment gold and maintain records of all activities related to investment gold, especially concerning the individuals with whom the transactions of investment gold were conducted.
According to the Law on Value Added Tax (“Official Gazette of RS,” no. 84/2004, 86/2004 – corrected, 61/2005, 61/2007, 93/2012, 108/2013, 6/2014 – adjusted dinar amount, 68/2014 – other law, 142/2014, 5/2015 – adjusted dinar amount, 83/2015, 5/2016 – adjusted dinar amount, 108/2016, 7/2017 – adjusted dinar amount, and 113/2017 – hereinafter: the Law), the taxpayer subject to VAT who engages in the trading of investment gold must issue invoices for such transactions, maintain records of all activities related to investment gold, particularly the parties involved in the transactions, and also keep the records in compliance with this law.
How is the content of the records for investment gold transactions regulated in Serbia?
The content of the records for investment gold transactions is further regulated in the Regulation on the manner and procedure for submitting notifications of opting for VAT calculation for the trading of investment gold, the content of invoices for the trading of investment gold, and the content of records of such transactions (“Official Gazette of RS,” no. 23/2018 – hereinafter: the Regulation). Among other things, the Regulation defines the content of records for investment gold transactions.
What must gold sellers record and keep when selling gold to its customers?
Accordingly, the taxpayer subject to VAT, who engages in the trading of investment gold, is required to keep specific records for all activities related to investment gold, including records of purchases or production of investment gold, records of investment gold transactions, and records of investment gold transactions conducted through intermediaries. The content of the aforementioned records is prescribed by Article 5 of the Regulation, while the form of the records is not specified. Furthermore, it should be noted that the taxpayer subject to VAT is obligated to retain the records of activities related to investment gold and the documentation upon which these records are based until the expiration of the statute of limitations for the determination and collection of VAT prescribed by the law regulating tax procedures and tax administration.
What the Law explicitly stipulates?
According to Article 36b, paragraph 12 of the Law, pursuant to Ministry of Finance Opinion, No. 011-00-213/2018-04 dated 26.3.2018, the taxpayer engaging in the trading of investment gold is required to issue invoices for such transactions, maintain records of all activities related to investment gold, especially concerning the individuals with whom the transactions of investment gold were conducted, and also keep the records in compliance with this law.
What type of records do gold sellers keep in Serbia?
In accordance with Article 5, paragraph 1 of the Regulation, the taxpayer subject to VAT, who engages in the trading of investment gold, is obliged to keep specific records for all activities related to investment gold, including:
- Records of purchases or production of investment gold;
- Records of investment gold transactions;
- Records of investment gold transactions conducted through intermediaries.
What do these records consist of?
The records of investment gold transactions mentioned in paragraph 2 of this article, in accordance with Article 5, paragraph 4 of the Regulation, should include the following information:
- Type (bars, plates, or coins), quantity, and description of investment gold (for bars and plates – weight, fineness degree, name of the manufacturer, and serial number if applicable, and for coins – country of origin and fineness degree);
- Number and date of invoice issuance;
- Name, or first name and last name, address, tax identification number, or personal identification number, or foreign person identification number (tax identification number or identification number stated in the identification document) of the party involved in the investment gold transaction.
What do the records of investment gold transactions conducted through intermediaries contain?
The records of investment gold transactions conducted through intermediaries mentioned in paragraph 3 of this article, according to paragraph 5 of the same article of the Regulation, should include the following information:
- Name, or first name and last name, address, tax identification number, or personal identification number of the intermediary;
- Type (bars, plates, or coins), quantity, and description of investment gold (for bars and plates – weight, fineness degree, name of the manufacturer, and serial number if applicable, and for coins – country of origin and fineness degree);
- Number and date of invoice issuance;
- Name, or first name and last name, address, tax identification number, or personal identification number, or foreign person identification number (tax identification number or identification number stated in the identification document) of the party involved in the investment gold transaction.
What about gold sellers that are not subject to VAT?
The taxpayer subject to VAT, who engages in the trading of investment gold that is not subject to VAT and investment gold that is subject to VAT in accordance with the Law, is obligated to keep separate records for these transactions as specified in paragraph 2 and 3 of this article (Article 5, paragraph 6 of the Regulation).
According to Article 46, paragraph 1 of the Law, the taxpayer is required to keep records that enable proper calculation and payment of VAT, and for each tax period, prepare a summary of the VAT calculation.
For how long must these records be retained?
Article 47 of the Law stipulates that the taxpayer is obliged to retain the records from Article 46 of this law and the documentation upon which these records are based until the expiration of the statute of limitations for the determination and collection of VAT, at least ten years after the end of the calendar year when the objects were first used and the investments in the objects specified in Article 32 of this law were completed.