In the European Community, transactions in gold are subject to VAT at rates which vary from country to country. In some countries, gold is subject to sales tax as well.
In the UK, there is a formal agreement between the Commissioner of Customs and Excise and the London Bullion Market, on matters relating to tax treatment, and no doubt with the support of the Bank of England. The Government’s role is critical in creating an enabling environment, especially through changes in the legal framework.