VAT on Purchased coins from abroad

[Gollum]

The only thing I coud find on HMRC site or whatever it is called is in relation to gold or bullion coins, and someting about other coins of value as collectible but no VAT rate, only soomething about if the coin is of lower value due to it being damaged or worn and of less value as a collectors item. They do not make it easy to surf or find things on their site do they, typical Gov't misdirection or obfuscation so the average person gives up looking.

[Oxford_Collector]

The only thing I coud find on HMRC site or whatever it is called is in relation to gold or bullion coins, and someting about other coins of value as collectible but no VAT rate, only soomething about if the coin is of lower value due to it being damaged or worn and of less value as a collectors item. They do not make it easy to surf or find things on their site do they, typical Gov't misdirection or obfuscation so the average person gives up looking.

I've wondered about the situation on gold - in theory there is no VAT on gold bullion, but I've definitely been charged import duties (and more than 5%) on gold coins I've purchased from the US in the past, which doesn't seem right?

[azda]

Gold is tax free only in the EU and on coins from 1800 onwards

Edited January 21, 2012 by azda

[Oxford_Collector]

Gold is tax free only in the EU and on coins from 1800 onwards

So a gold 1915 "Indian Head" Half Eagle ordered from the US would be fair game then?

[azda]

Fair Game for tax yes

Edited January 21, 2012 by azda

[Gary D]

The HMRC site is not the easiest to navigate, luckily it's the Businesslink website you need businesslink.gov.uk. If you search coins you will come up with chapter 97 heading 9705 and finally the comodity code 9705 00 00 20 (for gold and silver coins)

Follow this link and all will be explained.

http://tariff.businesslink.gov.uk/tariff-bl/export/commoditycode.html?export=false&from=heading&id=9705000020&simulationDate=22/01/12

When you purchase a coin from outside the EU just ask the sender to put this code on the customs declaration. Of cause if you don't want to pay any duty don't use the code

Edited January 22, 2012 by Gary D

[Gollum]

Of cause if you don't want to pay any duty don't use the code

Thats my kind of talk, they probably got enough "Tax" on it in its lifetime if it has chaned hands a number of times in and out of the country.

[Rob]

The HMRC site is not the easiest to navigate, luckily it's the Businesslink website you need businesslink.gov.uk. If you search coins you will come up with chapter 97 heading 9705 and finally the comodity code 9705 00 00 20 (for gold and silver coins)

Follow this link and all will be explained.

http://tariff.businesslink.gov.uk/tariff-bl/export/commoditycode.html?export=false&from=heading&id=9705000020&simulationDate=22/01/12

When you purchase a coin from outside the EU just ask the sender to put this code on the customs declaration. Of cause if you don't want to pay any duty don't use the code

Thanks Gary, that's wonderfully inconclusive as it quotes rates of both 5 & 20% without differentiating which should be which. Little wonder there is so much confusion. I had assumed that with Spink et al charging 5% for years that was the rate, but clearly it depends on which line is used from the list. So folks, if you get charged 20% VAT, refer customs to commodity code 9705 00 00 20 and then 03001 and point out this is what all the auction houses use and have done so for at least 10 years or whenever the rate was enacted. As it refers to gold and silver coins, there is a danger that copper/bronze/tin etc could be subject to 20% import VAT.

[Gary D]

The HMRC site is not the easiest to navigate, luckily it's the Businesslink website you need businesslink.gov.uk. If you search coins you will come up with chapter 97 heading 9705 and finally the comodity code 9705 00 00 20 (for gold and silver coins)

Follow this link and all will be explained.

http://tariff.businesslink.gov.uk/tariff-bl/export/commoditycode.html?export=false&from=heading&id=9705000020&simulationDate=22/01/12

When you purchase a coin from outside the EU just ask the sender to put this code on the customs declaration. Of cause if you don't want to pay any duty don't use the code

Thanks Gary, that's wonderfully inconclusive as it quotes rates of both 5 & 20% without differentiating which should be which. Little wonder there is so much confusion. I had assumed that with Spink et al charging 5% for years that was the rate, but clearly it depends on which line is used from the list. So folks, if you get charged 20% VAT, refer customs to commodity code 9705 00 00 20 and then 03001 and point out this is what all the auction houses use and have done so for at least 10 years or whenever the rate was enacted. As it refers to gold and silver coins, there is a danger that copper/bronze/tin etc could be subject to 20% import VAT.

Perhaps a call to HMRC Tariff Classification Service Enquiry Line 01702 366 077 for clarification is in order.

[Gollum]

Perhaps a call to HMRC Tariff Classification Service Enquiry Line 01702 366 077 for clarification is in order.

I nearly fell of my chair then. Clarification from a tax officer !.

[Oxford_Collector]

Fair Game for tax yes

(refering to a gold 1915 "Indian Head" Half Eagle ordered from the US )

But should it be taxed at 5% or 20%?

[Gary D]

The HMRC site is not the easiest to navigate, luckily it's the Businesslink website you need businesslink.gov.uk. If you search coins you will come up with chapter 97 heading 9705 and finally the comodity code 9705 00 00 20 (for gold and silver coins)

Follow this link and all will be explained.

http://tariff.businesslink.gov.uk/tariff-bl/export/commoditycode.html?export=false&from=heading&id=9705000020&simulationDate=22/01/12

When you purchase a coin from outside the EU just ask the sender to put this code on the customs declaration. Of cause if you don't want to pay any duty don't use the code

Thanks Gary, that's wonderfully inconclusive as it quotes rates of both 5 & 20% without differentiating which should be which. Little wonder there is so much confusion. I had assumed that with Spink et al charging 5% for years that was the rate, but clearly it depends on which line is used from the list. So folks, if you get charged 20% VAT, refer customs to commodity code 9705 00 00 20 and then 03001 and point out this is what all the auction houses use and have done so for at least 10 years or whenever the rate was enacted. As it refers to gold and silver coins, there is a danger that copper/bronze/tin etc could be subject to 20% import VAT.

Perhaps a call to HMRC Tariff Classification Service Enquiry Line 01702 366 077 for clarification is in order.

I got passed around a bit but the concensus was 5%

Have a read here. 3.4, 3.5, 3.6, 11.3. And if you can't sleep there plenty more.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000199&propertyType=document#P452_59689

[azda]

The HMRC site is not the easiest to navigate, luckily it's the Businesslink website you need businesslink.gov.uk. If you search coins you will come up with chapter 97 heading 9705 and finally the comodity code 9705 00 00 20 (for gold and silver coins)

Follow this link and all will be explained.

http://tariff.busine...onDate=22/01/12

When you purchase a coin from outside the EU just ask the sender to put this code on the customs declaration. Of cause if you don't want to pay any duty don't use the code

Thanks Gary, that's wonderfully inconclusive as it quotes rates of both 5 & 20% without differentiating which should be which. Little wonder there is so much confusion. I had assumed that with Spink et al charging 5% for years that was the rate, but clearly it depends on which line is used from the list. So folks, if you get charged 20% VAT, refer customs to commodity code 9705 00 00 20 and then 03001 and point out this is what all the auction houses use and have done so for at least 10 years or whenever the rate was enacted. As it refers to gold and silver coins, there is a danger that copper/bronze/tin etc could be subject to 20% import VAT.

Perhaps a call to HMRC Tariff Classification Service Enquiry Line 01702 366 077 for clarification is in order.

I got passed around a bit but the concensus was 5%

Have a read here. 3.4, 3.5, 3.6, 11.3. And if you can't sleep there plenty more.

http://customs.hmrc....ment#P452_59689

I've passed the link and relevant sections onto my Brother-in-law and see if he can make any sense from it. Will update when i hear something(Sections 4.3 and 4.4 seem relevant also)

Edited January 23, 2012 by azda

[Colin G.]

Just received a nice invoice from parcelforce for another coin from overseas, I took the liberty of getting the seller to write the customs code on for the 5% rate, just to see what would happen, I knew the seller was going to fill the customs form out accurately so I thought I would try and encourage the 5% rate rather than the 20%.

They have charged at the 5% rate, so it is a worthwhile exercise if you want to to bite the bullet rather than run the risk of 20% being applied, it is the bloody admin charge from parcelforce that makes your blood boil!!

[RLC35]

Colin, What is the exact code to use to obtain the reduced VAT tax of 5%...is it 9705000020, or 03001?

[Colin G.]

Colin, What is the exact code to use to obtain the reduced VAT tax of 5%...is it 9705000020, or 03001?

9705 00 00 90 is the code for copper/bronze but I got the seller to add (footnote 03001 - 5% rate applicable)