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Knowledge base

I buy back used gold and precious metals: do I have to pay the HBJOAT tax?

Short answer

No, in principle.

The purchase of gold or precious metals is not, in itself, an operation subject to the HBJOAT tax.

The resale of second-hand jewelry and precious metal objects is also not subject to this tax.

Is buying back gold taxable?

No. The HBJOAT tax applies to certain transactions defined by the Goods and Services Tax Code, such as deliveries made by manufacturers, certain retail sales, and imports.

The purchase of a piece of jewelry, an object or precious metal from an individual or a professional does not, in itself, constitute a triggering event for the HBJOAT tax.

Resale of jewelry and second-hand items

When you buy back a used piece of jewelry or precious metal object and resell it as is, no HBJOAT tax is due on this sale.

Article L. 471-27 of the Code of Taxation on Goods and Services expressly excludes second-hand goods from the taxable event applicable to retail sales.

The Directorate General of Customs also confirms that, since January 1, 2009, the tax is no longer levied on second-hand products.

Resale of gold intended for melting

When you buy back broken jewelry, gold scrap or other precious metals in order to resell them as material for melting, this sale is not normally subject to the HBJOAT tax.

Precious metals in raw form, precious metal waste and ingots are not, as such, included in the list of products subject to this tax.

The official list mainly targets jewelry, precious metalwork and goldsmithing items, their parts, as well as certain worked stones and pearls.

Concrete example

You buy back a second-hand gold bracelet for €500.

Two situations are possible:

  • You resell it as is, as a second-hand bracelet: no HBJOAT tax is due; ;
  • If you resell it as scrap gold to a smelter or refiner: no HBJOAT tax is normally due.

What if the gold is transformed into new jewelry?

The situation changes if you transform the purchased metal into new jewelry or if you have this jewelry made under conditions where you are considered to be participating in its manufacture.

The sale of the new jewelry may then be subject to the HBJOAT tax as part of the manufacturing activity.

Other applicable obligations

The absence of HBJOAT tax does not mean that the gold buying activity is free from other obligations.

Depending on the nature of the operation, other rules may apply, such as:

  • the keeping of the police log; ;
  • the rules relating to the guarantee of precious metals; ;
  • anti-money laundering obligations; ;
  • VAT rules; ;
  • the flat-rate tax on precious objects in certain situations.

These obligations are separate from the HBJOAT tax.

Official sources

  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Article A. 471-8 of the Code of Taxation on Goods and Services
  • Directorate General of Customs: tax for the development of the watchmaking, jewelry, and goldsmithing industries
  • Francéclat and teletax.fr
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