Declaring gold for tax purposes: The complete guide for jewelry designers

Hello dear creators and jewelry enthusiasts,

At La Fille du Sud , we share your passion for precious metals. We know that behind every piece of jewelry lie hours of work, an artistic vision, and exceptional materials such as 18 carat gold and 9 carat gold that we offer you. But beyond the creation process, an administrative question often arises: Do we have to declare gold for tax purposes?

The answer is more nuanced than a simple "yes" or "no." As your preferred partner for your supplies, we want to demystify this topic so you can focus on what you do best: creating.

The fundamental distinction: Investment gold vs. "working" gold

French tax law makes a crucial distinction between two types of gold. Understanding this distinction is key to answering our question.

1. Investment Gold

This refers to gold purchased for the purpose of financial investment. The law defines it precisely:

• Ingots or tablets of a purity greater than or equal to 995 thousandths.

• Coins minted after 1800, with a purity greater than or equal to 900 thousandths, which were legal tender in their country of origin.

Taxation of investment gold:

• When purchasing: VAT exempt.

• For resale: Subject to capital gains tax. It is at this point that a declaration is mandatory.

2. "Industrial" or "Working" Gold

Working gold encompasses all forms of gold intended to be transformed, such as:

• THE gold thread ,

• Sheets and laminates ,

• THE gold findings ( chains , clasps , rings ...),

• Pellets for melting .

In short, all gold supplies that you use to make your beautiful jewelry.

VAT: The real tax rule for your supply purchases

Unlike investment gold, working gold is considered a raw material. As such, Your purchases of gold supplies are subject to 20% VAT. .

This VAT is included in your invoice. And this invoice is the most important document for your accounting.

• Are you a professional (company, micro-enterprise)? The purchase invoice is a professional responsibility Depending on your tax regime, you may be able to deduct this expense from your turnover and/or recover the VAT.

• Are you a passionate individual? You pay VAT just like for any other purchase of goods.

So, practically speaking, do I need to make a specific declaration for my gold purchases?

The answer is NO. You do not need to fill out a specific form with the tax authorities to declare the purchase of your gold wire or clasps .

Your "declaration" is made indirectly and simply through your professional accounting:

1. Keep your invoices safe: Each purchase must be justified by an invoice. This is proof of your expenditure.

2. Include them in your expenses: The pre-tax amount of your gold supplies is a business expense. It is deductible from your income when calculating your taxable profit.

3. Declare your turnover: What you declare to the tax authorities is not the gold you buy, but the revenue you generate by selling the jewelry you created with this gold.

In summary: the purchase of your working gold is an expense, not an investment to be declared as such.

And what about reselling your creations?

This is where your reporting obligation comes in. The proceeds from the sale of your finished jewelry constitute your revenue This is the amount you must declare to URSSAF and the tax authorities, depending on your business structure (micro-enterprise, sole proprietorship, company, etc.). The applicable tax is that of the sale of goods or artisanal services.

For more information on this point, we advise you to refer to official sources such as impots.gouv.fr or consult your accountant.

Conclusion: Create with complete peace of mind

In summary, as a jewelry designer, here's what you need to remember:

• No, you do not need to make a specific tax declaration for the purchase of your 9 or 18 carat gold supplies.

• The gold you are buying is the gold of work , subject to VAT.

• Your A purchase invoice is essential. : it justifies your professional expenses.

• Your only obligation is to declare the turnover generated by the sale of your creations.

At La Fille du Sud , our mission is to provide you with the highest quality precious metals, but also to support you with clear and reliable information. Now that taxation is demystified, you can return to your workshop with peace of mind.

Ready to bring your next creations to life?

Discover our full range of 18k and 9k gold supplies and get inspired!

If you have any further questions, please feel free to contact us Our team is always here to help you.