Guide
VAT in the jewellery trade: the bullion exemption and the special base
Bullion gold and worked jewellery are not under the same VAT regime. Knowing which is which is the precondition for issuing the invoice correctly.
Last updated: 15 August 2026. Legislation changes; check the date you are reading this.
Why are there two regimes?
The gold itself and the workmanship applied to it are not treated the same for tax purposes. Delivery of precious metal in bullion form is exempt. In a worked item, what is taxed is not the bullion value inside the item but the value added to it, which is why the base is calculated specially.
Bullion delivery: exempt
Deliveries of bullion gold, bullion silver and precious stones are exempt under article 17/4-g of the VAT Law. On an electronic invoice this is stated with one of the UBL-TR exemption codes; for the jewellery trade the code is 230. Writing a different code leads to the invoice being rejected or to an incorrect declaration.
Worked items: special base
For delivery of worked precious metal, under article 23/f of the VAT Law the taxable base is the sale price minus the bullion value inside the item. In practice this means VAT is calculated on workmanship and margin. The reason for the special base is stated on the invoice with a code: 805 for gold, 808 for silver.
Why must the codes be right?
These codes declare which regime the invoice was issued under. A wrong code leads either to the document being rejected by the system or to it being accepted and turning into an incorrect declaration. The second is more dangerous, because the error is invisible at the time.
Platinum and palladium?
Platinum and palladium count as precious metals under Decree No. 32, and their worked forms may fall under the special base. However, code 230 used for the bullion exemption is specific to gold and silver; it does not apply to platinum bullion. This is rare in practice, and we recommend proceeding with your accountant's confirmation; this page does not replace it.
Sources
- VAT Law 17/4-g — exemption for deliveries of bullion gold, silver and precious stones.
- VAT Law 23/f — special base for delivery of worked precious metal.
- Decree No. 32 on the Protection of the Value of Turkish Currency — definition of precious metal.
This page is for information only and is not tax advice. Legislation changes; consult your accountant for your own situation.