Just had to pay £120 VAT on silver

[EX7EY]

Hi all. New to the forum and new to investing in silver. 

This was not what I wanted to post as my first post but I just received delivery of 20 silver coins ordered from silver to go on 31/12/2020 and I had to pay £120 in VAT charge to the UPS driver to get my package. 

Not the best start for me in terms of investing. 

Is this actually a thing now due to brexit and could I have simply avoided this by ordering from within the UK? 

Im a little devastated to be honest! 

[Gildeon]

The Ebay items from UK appear now to charge taxes like the ones I see from US. This happens only when the seller is using the Ebay's own shipping program though (I am in Ireland).

[sovereignsteve]

24 minutes ago, EX7EY said:

Hi all. New to the forum and new to investing in silver. 

This was not what I wanted to post as my first post but I just received delivery of 20 silver coins ordered from silver to go on 31/12/2020 and I had to pay £120 in VAT charge to the UPS driver to get my package. 

Not the best start for me in terms of investing. 

Is this actually a thing now due to brexit and could I have simply avoided this by ordering from within the UK? 

Im a little devastated to be honest! 

Ouch, you have my sympathies.

On the other hand, I think everyone on this forum would have advised you not to leave it so late to order silver from the EU.

All may not be lost however. I would think you would have a good case for reclaiming the VAT from Border Force on the grounds the purchase was made before the end of the EU regulations.

[Fadeingstar]

That is a bitter pill to swallow. I have some coins coming in from Europe waiting to see how much the tax man is going to try and take from me. Going to try for the 5% VAT code and see what they say.

You might have a shout at reclaiming the VAT as they were ordered while we were in the transition period.

[Rll1288]

1 minute ago, Fadeingstar said:

That is a bitter pill to swallow. I have some coin coming in from Europe waiting to see how much the tax man is going to try and take from me. Going to try got the 5% VAT code and see what they say.

Me thinks that (knowing HMRC) it will be 20%  plus import charges

[BackyardBullion]

4 minutes ago, Fadeingstar said:

That is a bitter pill to swallow. I have some coins coming in from Europe waiting to see how much the tax man is going to try and take from me. Going to try for the 5% VAT code and see what they say.

You might have a shout at reclaiming the VAT as they were ordered while we were in the transition period.

I think there will be no case for reclaiming VAT even if the purchase was before 1st January if the goods had not been dispatched before 1st January according to the .gov website

https://www.gov.uk/guidance/ongoing-customs-movements-and-procedures-at-the-end-of-the-transition-period

[Martlet]

Well that answers the question what happens with orders over £135, courier handles.  Was there an additional handling fee?

 

[EX7EY]

I take full responsibility by the way. 

I got a bit ahead of myself and didn't do my own due diligence so it's my fault of course. 

Just not the best start for me really but lesson learnt I suppose! 

[EX7EY]

3 minutes ago, Martlet said:

Well that answers the question what happens with orders over £135, courier handles.  Was there an additional handling fee?

 

I paid £109.19 in import vat and an £11.50 brokerage charge. 

[HillWalkerDundee]

Sorry, but ordering the goods before the end of Brexit holds no water whatsoever in tax law. VAT is applied at the date of supply and not the date of order. Sorry, but that is basic VAT law and has been ever since inception.

[ChrisSilver]

Welcome to the forum. It is unfortunate that you hadn’t Joined the forum earlier, as there are lots of topics discuss with VAT. The last day to order from coin invest / silver to go was 22nd December 2020. This was posted in the Premium Members lounge along with a discount code for FREE shipping and emails also sent out to those who are subscribed to the newsletter. 

 

[EX7EY]

1 hour ago, ChrisSilver said:

Welcome to the forum. It is unfortunate that you hadn’t Joined the forum earlier, as there are lots of topics discuss with VAT. The last day to order from coin invest / silver to go was 22nd December 2020. This was posted in the Premium Members lounge along with a discount code for FREE shipping and emails also sent out to those who are subscribed to the newsletter. 

 

Thanks for the welcome. 

That's a real shame as I also paid £20 odd in shipping plus a charge for paying on my debit card ha. 

Oh well, one for the lesson book here obviously! Think silver needs to rise about 30% now before I break even on the investment.

I assume i avoid this tax by simply ordering from a UK based retailer? 

[ChrisSilver]

2 hours ago, EX7EY said:

I assume i avoid this tax by simply ordering from a UK based retailer? 

Silver in the UK should have the VAT already added at the point of sale. If it is a preowned item, the UK dealer may operate under the margin scheme whereby the VAT is only on the margin and not the cost of the whole product. But I am not following what the latest laws are, as currently not buying silver as any spare money I have I invest into the forum. So I am therefore unsure if that margin scheme is still applicable after Brexit as not sure if it was just an EU law or also in UK law. You would need to research.

You can also buy on the forum from other members in the UK. Many members who buy and sell regularly on the forum will likely confirm that Premium Membership is a good investment as it allows you to see listings in the trade section 3 days earlier. 

[Erolroller]

On 06/01/2021 at 12:41, EX7EY said:

Hi all. New to the forum and new to investing in silver. 

This was not what I wanted to post as my first post but I just received delivery of 20 silver coins ordered from silver to go on 31/12/2020 and I had to pay £120 in VAT charge to the UPS driver to get my package. 

Not the best start for me in terms of investing. 

Is this actually a thing now due to brexit and could I have simply avoided this by ordering from within the UK? 

Im a little devastated to be honest! 

That's a shame. 

I must list some of my stack. £25 per brand new 1oz coin looks cheap now. 

[craig12]

i wont pay vat on owt i buy ,when will people learn,mananged to getsome this year £19 oz roughly    think some were £18 some may have been £19.50   

[HillWalkerDundee]

ChrisSilver

"So I am therefore unsure if that margin scheme is still applicable after Brexit"

The margin scheme is alive and kicking. It is used extensively in the second user market e.g. used cars, antiques etc.