Golden rule

THE EU Council of Ministers has voted to allow the Netherlands to tighten a loophole in the sale of gold that had allowed investors to evade and avoid VAT payments. European law allows the purchase of investment gold to be exempt from VAT, but there has been concern that the precious metal has been worked into jewellery or other goods, then sold on, without the additional value attracting VAT. The Council has allowed the Netherlands to insist that VAT is charged on such work, with the derogation lasting until December 2004 . Under EU single market legislation, member states must ask Brussels’ permission to make changes to VAT regimes.