China’s New VAT Rules to Reshape Gold Market, Says World Gold Council
Gold | 2025-11-10 11:09:46
The policies are effective from 1 November 2025 to 31 December 2027.
By Paul Ploumis
SEATTLE (Scrap Monster): The World Gold Council (WGC) has outlined the potential impact of China’s newly revised gold market value-added tax (VAT) policies, announced by the Ministry of Finance and the State Taxation Administration. The updated rules, effective from November 1, 2025, to December 31, 2027, aim to refine the taxation framework for gold transactions across different market segments.
According to the WGC, gold transactions conducted directly on the Shanghai Gold Exchange (SGE) will continue to be exempt from VAT. However, members withdrawing physical gold will now face distinct tax treatments based on the purpose of withdrawal. Those reselling gold for investment purposes will remain under the existing 13% VAT on value-added portions, while withdrawals for non-investment purposes will incur higher costs upon redistribution.
The WGC noted that the policy changes could weigh on gold jewellery demand in China due to rising costs, while bar and coin investment demand is expected to stay stable. Analysts also anticipate that some consumers may shift preferences toward investment-grade gold products to benefit from lower taxes. Moreover, the new policy could widen the gap between jewellery purchase and buy-back prices, further influencing buying behavior in the domestic gold market.
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How do you think China’s new gold VAT policy will impact consumer behavior?
Frequently Asked Questions
- What is the duration of China’s new gold VAT policy?
The policy is effective from November 1, 2025, to December 31, 2027.
- Who remains VAT-free under the new regulations?
Members buying and selling gold directly on the Shanghai Gold Exchange (SGE) for investment purposes remain VAT-free.
- How might the policy affect gold demand in China?
The higher costs for non-investment gold could reduce jewellery demand while encouraging more consumers to invest in gold bars and coins.
