VAT question about Silver

nexuss

Yoshua wrote: »

If you buy 18GBP worth from Guernsey at a time its VAT free.

At the moment you can get 3 half oz bars or rounds.



If you want a lot like by the tonne, then take your own boat over

You buy it VAT free but you then pay the taxes when you bring it into the UK.The inland revenue now has a deal with most retailers in guernsey and jersey that they log all transactions and make the customer list available for inspection.

Yoshua

nexuss wrote: »

You buy it VAT free but you then pay the taxes when you bring it into the UK.The inland revenue now has a deal with most retailers in guernsey and jersey that they log all transactions and make the customer list available for inspection.

Are you saying you wont get it VAT free if you order less than 18 quid?

jd87

Yoshua wrote: »

Are you saying you wont get it VAT free if you order less than 18 quid?

He's saying it is VAT free to buy it in Guernsey but then when you bring it into the UK (Guernsey is basically a different country) you will have to pay import tax (a completely different tax, not VAT).

RDB

same if you buy from the USA.

Best buy it from in the UK already.

John_Pierpoint

jd87 wrote: »

He's saying it is VAT free to buy it in Guernsey but then when you bring it into the UK (Guernsey is basically a different country) you will have to pay import tax (a completely different tax, not VAT).

The basic rule is that when you export something from a country with Value Added Tax the exporter can claim back the VAT.
When something is imported into a country with VAT, you, the importer, have to pay the VAT at the point of importation plus any specific or ad valorem taxes due (specific is X GBP per Y unit of measurement (eg 50 pence per kilo) ad valorem is a charge of say 10% on value (obviously value could be "fiddled" especially when both ends of the transaction are owned by the same company - in this case the price gets called a "Transfer Price" and HMR&C will haggle over the "real" value.

Countries with no VAT system think that VAT is a way of subsidising exports from a country that does have VAT.

The 18 GBP figure is a concession because it makes no sense to have the postie collecting (say) 2.70 before he can try to deliver the parcel.

Raw materials (imported from poor countries) tend to be duty free, as against VAT free; while manufactured items imported from wicked, exchange rate fiddling, relatively poor countries, like China, usually carry levels of duty in order to "protect" low skill manufacturing jobs in rich countries.

I have no idea what the duty is on ingot Silver - but it sounds like a raw material to me.

Anyone know if importing silver coinage (there is still quite a lot hidden away in USA) makes any difference to the VAT levy?

JasonLVC

John_Pierpoint wrote: »

I have no idea what the duty is on ingot Silver - but it sounds like a raw material to me.

http://ec.europa.eu/taxation_customs/dds/cgi-bin/tarlist?Lang=EN&DesLang=EN&SimDate=20090616&Offset=1&Goods=silver&Day=16&Month=06&Year=2009 (see No. 27)

If the silver coins are from USA, then there is no DUTY but VAT may still be applicable upon importation into the UK.

Silver as a raw material has duty in the range of 5.30% depending upon country of origin.

John_Pierpoint

At least we now have access to the internet to take a stab at guessing what an import consignment is in HMRC terms is.
I have "fond" memories of trying to clear a couple of cases of Swiss wine. Similar shambles about origins, colour, strength etc.and they would not even let me sample a bottle to make my mind up.

On the export front (no tax to be raised) the whole system seems to be in much more of a shambles:
HMRC What is it does it have moving parts? What is it worth?
ME 25K according to the invoice. I don't know how it works its all wrapped up! I can tell you that it is a kit for cleaning and air conditioning an office.?
HMRC Whrrrr - We will put it down as "machinery" then.

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