vat must be about holding the physical

[craig12]

just looking at bairds silver coins and there pushing a promo  silver eagles  vat free when held in our vaults

 

so dosent that mean that silver is indeed vat free 

you buy the silver from bairds  and their vat registered    so you pay vat and take delivery of your coins

 

the same vat registered company  holds your silver in their vaults and no vat to pay , so sureley the vat is an implication of it being in the silver buyers possesion  not the fact that its always vat on physical 

this isnt a paper trade  , a physical purchase  but it dosent leave the bullion dealer .. any thoughts 

 

 

i see this as the uk is vat free silver if not taking delivery  

 

which then poses the question , if you have physical silver in their vaults  do they lend it out against paper trades , thus when you want your silver its not there

[Shamatti]

It's just marketing.

 

They will do the paperwork to show that whatever you pay them, in is a price which includes VAT. So they are effectively just giving you discount to the value of the VAT which would have been added. I don't think they can sell sliver and not put VAT on it.

[Pete]

Maybe this is a quirke of not taking delivery i.e. they have sold you something but not supplied it so get around the VAT.

As soon as you want to receive physical, VAT would be slapped on.

In a bonded warehouse whisky and vodka are valued at less than £2 per litre but as soon as the bottle crosses the red line, excise duty and VAT push the price to £15 a bottle or more. I think you can buy spirits in bonded warehouses for long term storage and only pay the tax once the barrel or bottle leaves the bonded premises.

[Danny-boy]

It's just marketing.

They will do the paperwork to show that whatever you pay them, in is a price which includes VAT. So they are effectively just giving you discount to the value of the VAT which would have been added. I don't think they can sell sliver and not put VAT on it.

They are not selling it, as you are not taking possession.

They are allocating it.

If you ever decide to take delivery, you get a VAT bill.

[Shamatti]

They are not selling it, as you are not taking possession.

They are allocating it.

If you ever decide to take delivery, you get a VAT bill.

 

Ah, interesting. You learn something new every day! Thanks Danny-boy

 

Still, I would rather have it delivered. You don't own it if you can't hold it! I am sure more silver gets sold than actually exist.

[craig12]

strange how its only on ase and not all silver

[StackemHigh]

 

 I think you can buy spirits in bonded warehouses for long term storage and only pay the tax once the barrel or bottle leaves the bonded premises.

From memory you buy the spirit say scotch and then pay a maintance fee on top for the rest of its time in the bond

[Pipers]

Hi craig12, to me the advantage of holding your silver/gold in an allocated vault, would be to hold it in a different country.  You have to pay a storage fee every year.  You may have to check what is the minimum charge is. 

[silversword]

Vaulting fees for silver are much higher than gold due to the extra room it takes up. I quickly got out of the allocated silver game when I worked out how much the storage was costing. Gold is the better choice unless you get very low (or no) storage fee.