- Reverse charge mechanism is allowed for used gold intended for melting.
- If there is no transformation of the good, the margin scheme applies according to the Italian Revenue Agency.
- The applicable VAT regime for gold artifacts depends on the objective qualities of the good.
- “Compro oro” businesses typically buy used gold and sell it to foundries for melting in exchange for money.
- Each case must be carefully evaluated to determine if VAT applies via reverse charge or the margin scheme for used goods.
- The Italian Revenue Agency states that reverse charge applies only if the buyer performs melting and industrial transformation on the used gold.
- Jurisprudence indicates that reverse charge does not require the buyer to directly transform the gold, as long as the metal has a purity of at least 325 thousandths and is not for immediate consumption.
- The product must be intended for transformation into another object and enter a new production cycle.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
