Sales Tax

Sales Tax on Bullion: U.S. State Rates and Why GBI Exchange Collects It

At GBI Exchange, we’re firm believers that precious metals are the oldest and longest continually trusted form of money there is.

And if you were “buying” money -- such as making a foreign exchange transaction between U.S. Dollars and Euros -- you would not expect to pay sales tax on your purchase.

However, not all U.S. states see it this way. Many states require us to charge sales tax on bullion and other forms of precious metals delivered to those states. Orders into vault storage are not subject to state sales taxes. See below for details.

Background on Sales Tax Changes

Prior to 2019, few online bullion dealers charged sales tax, except when shipping to states where they were headquartered or had other operations. However, a 2018 U.S. Supreme Court decision, Wayfair v. South Dakota, paved the way for states to charge sales tax on ALL goods sold online and shipped to customers in that state.

While it’s little surprise to see Amazon, eBay, Walmart and others now collecting sales tax online, it may surprise some to see the same at GBI Exchange.

However, in states where bullion sales are subject to sales tax and the state has decided to collect sales tax on shipped-in goods, we must now charge that tax to customers at the time of any delivery order to those states.

Who Is Affected?
Delivery Orders to U.S. States

GBI Exchange currently collects sales tax on delivery orders shipped to the following states:

International Delivery Orders

We do not charge sales tax or VAT on international delivery orders. However, this does not mean your order may not be subject to taxes or customs fees. All such charges on international shipments are the customer’s responsibility.

Vault Storage Orders (Both Domestic and International Customers)

There is no sales tax on bullion purchased for private vault storage accounts, regardless of your primary residence or destination vault.

Similarly, if you sell your bullion from private vault storage, no sales tax will be collected.

However, if you take physical delivery of your bullion out of vault storage, sales tax may be required at the time of that delivery (based on then current value of the delivered bullion), at the same rates as the table below.

When Is Sales Tax Collected?

You’ll see sales tax as a separate line item during checkout once you select your shipping destination.

You’ll see exactly how much sales tax is being collected prior to completing your order. Sales taxes will also show up on your order confirmations, which can be used when taking a sales tax deduction from local or federal income taxes.

These new taxes apply only to bullion shipped to home addresses in the states listed below, although the list of states may change to keep up with changes in state tax laws. Bullion purchased for private vault storage will not be charged sales tax.

Questions? Email us or give us a call at (877) 424-9507.

Please keep in mind, everyone’s tax situation is unique and we cannot and do not offer individual tax advice.

State by State Sales Tax Policy

Note that actual sales tax rates are calculated at the time your order is placed. This table is for reference only and is subject to change as states adjust their rules. It covers the general rules that apply to each state and our product offerings; however, the table may not reflect additional local taxes based on your specific address within your state (as of 2014, there were 9,998 different sales tax jurisdictions in the United States, each with its own rules).

State/Territory As of date Categories of Taxed Items and Other Rules
New York July 1, 2016
  • Bullion orders under $1,000 total per transaction.
  • All jewelry, Krugerrands, and other goods
Minnesota March 01, 2020
  • All jewelry, Krugerrands, and other goods
Alabama May 01, 2020
  • Coins minted by nations other than the U.S that are non gold, silver or platinum.
  • Bullion that are non gold, silver or platinum.
  • Accessory items and processed items.
Arkansas May 01, 2020
  • All Taxable
California May 01, 2020
  • Taxes must be collected on Copper, Platinum or Palladium products.
  • Gold and/or Silver coins, rounds and bars if the total amount of a single sales transaction is less than $1,500.
  • Accessory items like jewelries are taxable.
Colorado May 01, 2020
  • CO state only tax on copper products and jewlery.
  • Localities will vary and tax on non jewlery items as well.
Connecticut May 01, 2020
  • Taxes must be collected on Platinum products, Palladium products, Copper products, certain numismatic products, accessory items, processed items and any single transaction comprised of Gold and/or Silver totaling less than $1,000.
D.C. May 01, 2020
  • All Taxable
Florida May 01, 2020
  • Coins minted by nations other than the US, Gold/Silver bullion.
  • Fully exempt if >$500.
  • Other precious metal Bullion are fully taxable
Hawaii May 01, 2020
  • All Taxable
Illinois May 01, 2020
  • Taxes must be collected on certain Palladium products, Copper products, any bullion less than .980 fine, accessory items and processed items.
Indiana May 01, 2020
  • Taxes must be collected on Copper products, any Gold products with a purity less than .995 fine, any Silver products with a purity less than .999 fine, any Platinum products with a purity less than .9995 fine, any Palladium products with a purity less than .9995 fine, numismatic products, accessory items and processed items.
Iowa May 01, 2020
  • Taxable on bullion other than gold,silver or platinum.
  • Taxable on accessories i.e jewerlries and processed items
Kansas May 01, 2020
  • Taxable on coins, bullion that are platinum and other metals, accessory items and processed items
Kentucky May 01, 2020
  • All Taxable
Louisiana May 01, 2020
  • Taxes must be collected on Palladium products, Copper products, numismatic coins that have a sales price of more than $1,000, accessory items and processed items
Maine May 01, 2020
  • All Taxable
Maryland May 01, 2020
  • Taxes must be collected on Copper products.
  • Any single transaction of Gold, Silver, Platinum or Palladium less than $1,000
Massachusetts May 01, 2020
  • Taxes must be collected on Copper products.
  • Any single transaction of Gold, Silver, Platinum or Palladium less than $1,000
Mississippi May 01, 2020
  • All Taxable
Nebraska May 01, 2020
  • Taxes must be collected on Copper products, accessory items and processed items
Nevada May 01, 2020
  • All Taxable
New Jersey May 01, 2020
  • All Taxable
New Mexico May 01, 2020
  • All Taxable
North Dakota May 01, 2020
  • Taxes must be collected on Copper products, Precious Metal bullion that does not meet certain purity requirements of at least .999 fineness.
  • Jewelries are taxable
Ohio May 01, 2020
  • All Taxable
South Carolina May 01, 2020
  • Taxes must be collected on Copper products, Palladium products and jewelries
Tennessee May 01, 2020
  • All Taxable
Texas May 01, 2020
  • Taxes must be collected on Palladium Bullion products, Platinum and Palladium Bullion Coins, certain Copper products and jewelries
Utah May 01, 2020
  • Taxable on Copper products; Palladium products; any bullion products made of Gold, Silver or Platinum if the Gold, Silver or Platinum content is less than 50%; jewelries
Vermont May 01, 2020
  • All Taxable
Virginia May 01, 2020
  • Taxes must be collected on bullion products made of Copper or Palladium
  • Taxes must be collected on coins if a single sales transaction is less than $1,000
  • Any sale of Gold, Silver or Platinum bullion if a single sales transaction is less than $1,000, and all jewleries
West Virg May 01, 2020
  • Taxes must be collected on Copper products and jewelries
Wisconsin May 01, 2020
  • All Taxable
Wyoming May 01, 2020
  • Taxes must be collected on any coins that have Gold or Silver content but are not recognized as mediums of exchange for the payment of debts and taxes
  • All Copper products
  • Any bullion products made of Gold or Silver if such bullion is not stamped or imprinted with its weight and purity; accessory items
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