In Canada, precious metals are exempt from Goods and Services Tax (GST) and Harmonized Sales Tax (HST) if they meet specific purity and form requirements, as defined under the Excise Tax Act. Here’s the breakdown:
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Gold: Exempt if refined to a minimum purity of 99.5% (.995 Fine Gold) and in the form of bars, ingots, coins, or wafers.
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Platinum: Exempt if refined to a minimum purity of 99.5% (.995 Fine Platinum) and in the form of bars, ingots, coins, or wafers.
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Silver: Exempt if refined to a minimum purity of 99.9% (.999 Fine Silver) and in the form of bars, ingots, coins, or wafers.
These exemptions apply because such metals are classified as “financial instruments” under Canadian tax law, typically linked to investment purposes. For example, the PCM .9999 pure Canadian Gold Maple Leaf coin avoids GST/HST, as does the .9999 Fine Silver Buffalo Round, but a .9167 pure American Gold Eagle does not, while the .999 pure silver American Eagle is exempt. Palladium, however, is an exception. Regardless of purity, it’s subject to GST/HST as it’s not included in this exemption. If the metal falls below these purity thresholds or isn’t in the specified forms (e.g., jewelry, scrap gold), it’s taxable at 5% (GST) or up to 15% (HST), depending on the province.
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