The legal and tax aspects of buying diamonds
1. Are diamonds subject to value added tax?
As with platinum and silver, the physical possession of diamonds is subject to value added tax. Therefore, we are obliged to add VAT to our diamonds' prices when they are delivered to a member state of the European Union. The amount of the value added tax depends on the country of residency and/or shipping address of the customer (e.g. Luxemburg: 17%, Germany: 16% (until 2020/12/31), Austria: 20%, Belgium 21%). When shipping to Switzerland and other countries which do not belong to the EU, we solely charge the net value of the goods as export price (without VAT). VAT will then be charged in the respective amount when the goods arrive at their destination country (e.g. Switzerland 8%).
2. Is there a possibility to store them tax-free?
Yes, DIAMONDAS also offers the opportunity to store diamonds tax-free in Germany, Switzerland, Dubai, Hong Kong, and Singapore.
3. Is it possible to buy diamonds anonymously?
Purchase, possession, and sale of diamonds do not need to be registered with authorities. DIAMONDAS offers so-called "cash businesses" so that customers can buy diamonds anonymously up to a purchase price of €9,999 and do need to identify themselves. This possibility of an anonymous purchase is limited to one purchase per household per year. Money laundering laws require that customers need to identify when the purchase price exceeds €10,000.
4. Are profits from an increased value of my diamonds tax-free?
Yes, under the following circumstances: According to § 23 EStG, sale transactions of other economic goods that include diamonds are onyl subject to tax if the time between purchase and sale of the good is less than one year. Therefore, sale and the resulting returns are tax-free if over one year has passed between purchase and sale. (Exemption: This is not true if the sale is made for another type of income, especially when it comes to commercial activity.)
5. What do I need to know about importing?
Nothing, actually. We will take care of all the import paperwork and you do not need to declare your goods at customs or pay import taxes. We will directly deliver the ordered diamonds via insured valuables transport to the desired address.