New Collector/Stacker help guide UK: VAT on Silver

[ChrisSilver]

This I a common question from new UK members registering, so I have decided to create this short guide. This guide is meant for guidance only and does not constitute financial or TAX advise, it is correct to the best of my knowledge but readers should do their own research before acting upon any information contained within.

VAT on silver imports 
All silver imported to the UK from outside of the EU is subject to import tax and charges, VAT on silver is currently 20%.

The UK is in a transitioning period and is set to leave the EU on 1st January 2021. Whilst the UK is in this transitioning period there is no import tax or charges for goods imported from the EU. After we leave the transiting period (i.e. on 1st January 2021) it is assumed that the imports will be subject to the full rate of VAT which 20%. 



Can I buy VAT free / low VAT/TAX silver in the UK?

Any UK company that has an annual turnover over £85,000 must register for VAT. This means that they must charge VAT on VAT applicable sales, at the applicable rate of VAT for that item. Silver has a VAT rate of 20%. 

VAT registered dealers in the UK may sell secondhand/preowned silver on a margin scheme, this means that instead of applying VAT to the price of the whole item, it is calculated on the difference between the purchase price and the resale price, and then this is added on top. (Note that dealers will often give you the total including VAT, but check with them if you wish to know their prices) This ultimately means a lower cost for a secondhand/preowned item vs a cost of a brand new item. Note that not all dealers in the UK use this scheme and their choice of using it is down to them.

Two well established UK companies that have sometimes have secondhand/preowned items in stock are Atkinsons and Chards. Both of which are on the forum also. Note that there are also other UK companies, these two are just given as examples. 


Can I buy VAT free / low VAT/TAX silver from outside UK?

There are currently dealers that operate in Germany, and some in Estonia that offer silver at a lower rate than can be purchased in the UK. This is due to current tax and how they have decided to set up their businesses in these regions. This scheme is offered on Silver Coins (that are legal tender) only and not on Bars.

These companies include, but are not limited to; Silver To Go, European Mint (which BackyardBullion organised a group buy for), GoldSiver.be. Note there are other companies, these are just given as examples. Please also check the Dealer Directory on the forum. 


Lowest cost silver bars & items in the UK. 

Please see TSF's Dealer Directory list here. You can also see the Newbie PM FAQs here. Many members also choose to buy items exclusively on the forum's trade section. Trade listings are available to Premium Members only for the first 3 days and all good deals go well within this time frame, so to have a chance to pick up some of the deals in the forum trade section, please upgrade to Premium Membership.


Conclusion 

We hope that you have found the information here useful, please refer to the main forum section for more helpful information from other members. If you have found this information useful or any other information on the forum useful, please upgrade to Premium Membership to support The Silver Forum grow, the larger we grow the more great deals can be found in our trade section and the more useful information is available on the forum  having Premium Membership will also give you the benefits listed here.

If any of the information in this topic is believed to be incorrect please let me know so that it can be fixed.