- China’s new VAT rules (Nov 2025–Dec 2027) increase costs for gold jewellery by reducing deductible input VAT from 13% to 6%, raising final prices and likely weakening demand.
- Investment gold (bars/coins) remains largely unaffected, with SGE members retaining VAT advantages, likely shifting more investment gold purchases to SGE members like banks.
- Smaller jewellers and non-SGE-member distributors face higher costs and margin pressure, accelerating industry consolidation and pushing brands toward innovation.
- Consumers may shift from jewellery to investment gold bars or custom-crafted pieces to avoid higher VAT.
- Overall, jewellery demand is expected to decline, while investment gold demand remains stable or increases.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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