Importing Sovereigns from US

[MackWhite]

Hi All, 

I have been offered some Sovereigns to purchase from US. Deal sound too good to be real, but I'm considering using Goods and Services and having a go with it. Is that something any of forum members had done in the past. How the taxation looks like, do I need some licence to import (as familiar accountant mentioned something about it). 

I hadn't decided on purchase Yet but I think that's valuable knowledge.

[Spyder]

If you get hit with import tax, does the deal still add up, that is what you need to look at. 

[MackWhite]

Yes that's exactly what I don't have any experience with. Seems like I'll have to ring to the border agency. 

[Spyder]

Have a word with @Fadeingstar about how he managed to import from the states and what difficulties he faced

[Fadeingstar]

To my knowledge gold is exempt from VAT you can find some infomation here:

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121

You mention that the deal sounds too good to be real. There is an old saying "if it seems to good to be true it usually is". If it was to be dodgey it could be very hard if not impossible to reclaim your funds.

You may also be charged a brokerage fee by the courier company even if there are no vat or duties to be paid.

Edited April 4, 2023 by Fadeingstar

[sixgun]

3 hours ago, MackWhite said:

Hi All, 

I have been offered some Sovereigns to purchase from US. Deal sound too good to be real, but I'm considering using Goods and Services and having a go with it. Is that something any of forum members had done in the past. How the taxation looks like, do I need some licence to import (as familiar accountant mentioned something about it). 

I hadn't decided on purchase Yet but I think that's valuable knowledge.

It's investment gold so you should be able to import tax free.
Do you have photos? 
There are lots of well priced sovereigns in the UK - why are you taking the risk?

[johniom]

I imported approx €3k worth of gold bars from a dealer in Germany last year which are VAT exempt. The shipper used Fedex. As soon as they arrived at Fedex's hub in the UK I received a text message from Fedex requesting around £350 for taxes and fees (ie VAT) before they would release the parcel. Contacted Fedex's customer services to advise that the package contained gold bullion and was therefore VAT exempt and whilst someone did get back to me quickly to say they would investigate it did not proceed very quickly from there. I didn't really want €3k of gold sat with Fedex so after a couple of days I just paid the taxes so that the parcel could be released from the hub. Months later I was still chasing for a refund. Out of the blue literally 6 months after delivery  I received an email from someone at Fedex saying that yes I was indeed due a refund and it would be on my credit card within 10 days. I never did get that refund and I learnt my lesson. 

 

[MackWhite]

10 minutes ago, johniom said:

I imported approx €3k worth of gold bars from a dealer in Germany last year which are VAT exempt. The shipper used Fedex. As soon as they arrived at Fedex's hub in the UK I received a text message from Fedex requesting around £350 for taxes and fees (ie VAT) before they would release the parcel. Contacted Fedex's customer services to advise that the package contained gold bullion and was therefore VAT exempt and whilst someone did get back to me quickly to say they would investigate it did not proceed very quickly from there. I didn't really want €3k of gold sat with Fedex so after a couple of days I just paid the taxes so that the parcel could be released from the hub. Months later I was still chasing for a refund. Out of the blue literally 6 months after delivery  I received an email from someone at Fedex saying that yes I was indeed due a refund and it would be on my credit card within 10 days. I never did get that refund and I learnt my lesson. 

 

That sounds... Hectic

[MackWhite]

13 minutes ago, sixgun said:

It's investment gold so you should be able to import tax free.
Do you have photos? 
There are lots of well priced sovereigns in the UK - why are you taking the risk?

I'm just considering, deal is too good to be real. As it's way under spot. I'll most probably drop it. It's 340$ a Sovereign.

[MackWhite]

39 minutes ago, Fadeingstar said:

To my knowledge gold is exempt from VAT you can find some infomation here:

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121

You mention that the deal sounds too good to be real. There is an old saying "if it seems to good to be true it usually is". If it was to be dodgey it could be very hard if not impossible to reclaim your funds.

You may also be charged a brokerage fee by the courier company even if there are no vat or duties to be paid.

That's what my gut is suggesting as well, although it's an established business that causes me to consider the deal

[johniom]

Yes Fedex were pretty bad on the old customer services front there. I don't think it helped that the dealer didn't properly list the contents on the customs label though.

 

[Fadeingstar]

2 minutes ago, MackWhite said:

I'm just considering, deal is too good to be real. As it's way under spot. I'll most probably drop it. It's 340$ a Sovereign.

That works out around £272 a pop which is way under market value does set off some alarm bells. Do they have any more infomation why they are selling them so cheap?

[dicker]

May I ask what “too good to be true” is?

I buy Sovs from outside of the U.K. (mostly Australia).  Happy to provide an idea of what is realistic if needed.  
 

 

[Spyder]

1 hour ago, dicker said:

May I ask what “too good to be true” is?

I buy Sovs from outside of the U.K. (mostly Australia).  Happy to provide an idea of what is realistic if needed.  
 

 

Well the post above your states £272. That is at least £100 cheaper then you get anywhere in the UK.

What kind of price are you paying if you don't mind saying. 

Is it complicated getting them from Australia?

[MackWhite]

2 hours ago, dicker said:

May I ask what “too good to be true” is?

I buy Sovs from outside of the U.K. (mostly Australia).  Happy to provide an idea of what is realistic if needed.  
 

 

They have been put up for 340$.

1 hour ago, Spyder said:

Well the post above your states £272. That is at least £100 cheaper then you get anywhere in the UK.

What kind of price are you paying if you don't mind saying. 

Is it complicated getting them from Australia?

That's something I would be interested in as well.

[MackWhite]

4 hours ago, Fadeingstar said:

That works out around £272 a pop which is way under market value does set off some alarm bells. Do they have any more infomation why they are selling them so cheap?

Unfortunately not and seller is a bit eager 

4 hours ago, johniom said:

Yes Fedex were pretty bad on the old customer services front there. I don't think it helped that the dealer didn't properly list the contents on the customs label though.

 

Seems like that is the case with most of them I'm hearing about lately.

[SidS]

I have never bought gold in from the states but I've bought plenty of collectable coins from the states and I've had mixed results.

Some have been paid for with postage, arrived in the UK, flown through customs with no charges and landed on my doorstep on time.

Others have been held up at customs and I've had import charges to pay before they were released.

Others have cost me a small fortune - especially when eBay started the new postage system where they put all the import taxes on at source and you end up paying an additional £100 to deliver a coin worth £300. Thank god I'd practically finished my SLQ collection by the time that stupid system came in.

[dicker]

The odd pricing would cause me to worry.  I would get pics and check they are not half Sovs…

[JamesH]

This looks very much like a seller that keeps appearing on one of the FB bullion/coin groups. Ads appear and then disappear several minutes later. Sovs well undervalued etc. I’d steer clear

[MackWhite]

11 hours ago, JamesH said:

This looks very much like a seller that keeps appearing on one of the FB bullion/coin groups. Ads appear and then disappear several minutes later. Sovs well undervalued etc. I’d steer clear

Exactly, they appeared back after few days prices 100$ higher. I wasn't as adventurous enough to go with this deal. Seems a Young bloke which is quite established on Instagram as Beach Coins. Question was still worth asking as there are quite a few decent sellers posting from US. But particular one seem to good to be real. I think two days later he was selling few QB completers for 55$ a pop.

[MackWhite]

On 09/04/2023 at 14:37, SidS said:

I have never bought gold in from the states but I've bought plenty of collectable coins from the states and I've had mixed results.

Some have been paid for with postage, arrived in the UK, flown through customs with no charges and landed on my doorstep on time.

Others have been held up at customs and I've had import charges to pay before they were released.

Others have cost me a small fortune - especially when eBay started the new postage system where they put all the import taxes on at source and you end up paying an additional £100 to deliver a coin worth £300. Thank god I'd practically finished my SLQ collection by the time that stupid system came in.

Yes I'm under that impression, that laws regarding importing PM is as firm as financial ones in UK. 

[johniom]

Is it Beach Coins on instagram or Beach City coins @MackWhite? I've heard of the last one, they have been featured on a few silver stacking videos very recently and appear trustworthy. I just ordered a silver coin from america, (not from Beach City). I'll let you know how I get on. As others have mentioned it's hit and miss through customs.

[MackWhite]

1 hour ago, johniom said:

Is it Beach Coins on instagram or Beach City coins @MackWhite? I've heard of the last one, they have been featured on a few silver stacking videos very recently and appear trustworthy. I just ordered a silver coin from america, (not from Beach City). I'll let you know how I get on. As others have mentioned it's hit and miss through customs.

I think that's the one. To be fair he's social media accounts looks legit.

Would love to hear how Your deal will go through.

[johniom]

This was the video taken in the actual coin store for Harrys Coins/ Beach City coins (they show their business cards at the end). There have been a couple of follow up videos in the same shop. They seem like really decent guys. Maybe they just made a mistake on pricing.  

 

[MackWhite]

I think the one I did talk with went by name Godfred Beach Citycoins (FB) but he had a link taking You to Instagram account with slightly different name Janice why we I thought we were talking about the same place.