Which costs are not refunded to the buyer when selling gold jewelry?

In the Persian year 1405, the value-added tax rate on gold is 10%, applied to crafting wages, the seller's profit, and commission. The value of raw gold itself is exempt from this tax.

According to Ambassador Arjan, the price paid for buying ornamental gold does not only include the value of the gold used in it. When reselling, usually the weight, carat and gold day's purchase rate are the basis of the calculation; Therefore, the seller does not necessarily receive the full amount listed on the purchase invoice.

Construction fee, seller's profit and tax

Manufacturing fees and dealer interest are among the costs that are paid when the gold is bought, but are not usually returned to the gold dealer when it is resold. Value added tax paid at the time of purchase is also not refunded to the buyer.

In 1405, the gold value-added tax rate is 10%, which is applied to construction wages, seller's profit, and royalties; The original value of raw gold is exempt from this tax.

An example to calculate the purchase cost

Suppose the value of a piece of gold is 100 million tomans. With the addition of 10 million tomans of construction wages, 7 million tomans of seller's profit and 1 million 700 thousand tomans of tax, the final amount of the invoice reaches 118 million 700 thousand tomans.

If on the same day and without changing the market price, the redemption value of this piece of gold is 100 million Tomans, the difference between the amount paid and received will reach 18 million and 700 thousand Tomans.

This is a hypothetical example and the actual resale amount may vary depending on the gold purchase rate, terms of the transaction and condition of the piece.

How much does the price of gold have to increase to break even?

In the above example, if other conditions remain the same and the piece is sold without additional costs, its gold value must increase from 100 million tomans to 118,700,000 tomans so that the sales amount is equal to the initial purchase cost; This means that the price of gold should increase by 18.7%.

The value of the gem, the brand and the specific design should also be considered separately. These items are not necessarily valued at the same amount as the purchase price when resold.

It is recommended that you carefully check the invoice components before purchasing and ask the seller how the buyback price is calculated, especially for jeweled or special pieces.