A new finance ministry decree bases the rate on the London gold price, now that there is no longer a Frankfurt gold fixing.
Coins sold for their metal or as collectors' pieces are subject to VAT at 16% or 7% respectively. A collector's piece qualifying for the lower rate is a gold or silver coin sold for more than 250% of its metal value. According to the Finance Ministry decree on the subject, the value of gold is to be derived from the Frankfurt daily gold price fixing. Unfortunately, 1999 saw the end of the organised gold market in Frankfurt. The Ministry of Finance has now reacted with a decree ordaining that the London gold price be taken as the basis from January 1, 2000 on. The Ministry also allows dealers to opt for the simplified rule of taking the day's rate for the last business day in November as the basis throughout the next following calendar year, January-December. Based on the rates fixed on November 28, 2003, the "standardized" value for gold in 2004 will be € 10.680/kg and for silver € 139/kg (the so-called Degussa price).
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