UK Import Duty & VAT Reclaim

[Minted]

Hi,

I spent a while deciding whether to pay the extra ~£20 from a UK seller or risk importing a 1/10oz gold Toro from EMK.  Chose EMK in the end, and the coin is now at customs, requiring charges to be paid. 🙄

Firstly, just want to double check that there shouldn't be any VAT or duty applied to this coin?

Secondly, I haven't done this before, is this the correct form and what is the exact wording I need to use to confirm that it should be VAT free?

BOR286 - Customs Duty and/or import VAT relating to imports by post (publishing.service.gov.uk)

Thanks

[Bratnia]

Waited with interest to see what replies might have indicated, but as nobody has replied yet and bearing in mind I know nothing about such matters, are you aware of 

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121#sect8

When I click on the "Further information on imports is given in Imports (VAT Notice 702)" link within that the browser tab titles indicates [Withdrawn]. Reading around some of the rest of it also led to content removed since Brexit type indications.

Best would be expert advice. Otherwise and assuming that is the correct form I'd be inclined to enter something like "The gold being imported is 1/10oz of investment gold purchased for myself at a price of £xxx. I am a private individual investor, not registered for VAT and believe that the gold being imported to be exempt from VAT as per (CPC) 40 00 073"

But to repeat, I know nada. 

Edited June 8, 2023 by Bratnia

[Minted]

Thanks for the reply, I'm also surprised there weren't any others.

I have now received the package and can see that EMK failed to write 'gold' in the description on the customs form.  So it's been taxed at the standard 20% VAT rate.

I think the important phrase is 'investment gold coin'.  I have now found the page I'd seen before regarding this - Investment gold coins (VAT Notice 701/21A) - GOV.UK (www.gov.uk)

Interestingly, this spreadsheet is meant to list all of the VAT free gold coins, but doesn't list a 15 Euro coin from Spain.  Hopefully that's just an oversight. VAT_Notice_701-21A_coins_list.ods (live.com)

2. Investment gold coins

2.1 Definition of an investment gold coin

An investment gold coin is either:

a. Gold coin minted after 1800 that:

• is of a purity of not less than 900 thousandths
• is, or has been, legal tender in its country of origin
• is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin

[Bratnia]

Are you VAT registered and able to reclaim it? I'm not so I guess I'd have to bear that cost.

I note that https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121 indicates you're supposed to notify HMRC that you trade in gold, and where if you don't have a VAT number you're supposed to include your accountants name and VAT number. I suspect many who own/trade gold don't directly do that, which down the line could introduce taxation issues/problems.

Life in general, driving ...etc. is increasingly made more complex, as that then opens up potential revenues. I got caught with a £80 fixed penalty notice the other day where a road that I'd driven down before had been changed to being a out of school hours road. The sign indicating that was rather obscure, easily missed if you're watching other traffic/pedestrians. A few minutes later and I'd have been fine. 

One local council around my way has made the traffic system all too easy to incur penalties for those that don't know the area. I originally got caught with two, one being a bus lane line that ran up very close to a road where you turn left into and if you cut the corner of that they have a camera that catches you. Another requires that you drive around the wrong side of a traffic light when the light turns green or again your captured. Once you know those (have been fined once) you avoid getting caught again, but I suspect many strangers to the area get caught quite possibly twice in the same day/town.

[Minted]

I'm not VAT registered, and not buying for business purposes, purely for my own collection.  

Gold investment coins should be VAT free in these circumstances, regardless of being purchased within the UK or from abroad.  (Though I may have the legal wording slightly wrong).  I reckon a lot of people get caught out by this unfortunately.  If they're not aware of the rules, they probably would just pay it, not knowing any better.  As long as the seller clearly marks them as gold coins, they should pass through customs easily.  Unfortunately, there's no way to query a customs charge, you have to pay it to have the item delivered, and only then can you try to reclaim it.

I'm hoping that posting the form linked above, along with the invoice (which does clearly state gold on it) and the labels from the package will be enough for them to refund the VAT costs directly back into my bank.  I don't know how long the process takes, but fortunately I'm in a position where I can afford to wait for it.  I wouldn't have risked buying from abroad if I wasn't.  I was aware that this could happen, but was optimistic that it would be a smooth delivery as previous ones have been.

I must admit, that despite all the hassle, the coin itself is very nice, good quality and great design.  I was slightly worried I'd be disappointed with it after all this hassle, but that's not the case! 🙂

[Bratnia]

I hope you continue to update/share your experience/outcome with the rest of us and the wording you use on that https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1108962/BOR286-English-09-22.pdf  form would be helpful.

I'd be inclined to write the reason as being ...

Quote

The item is a investment gold coin of purity not less than 900 thousandths bought for a price not exceeding 180% of the open market gold content value, so VAT exempt as per (CPC) 40 00 073"

If it is as relatively simple as that and you don't mind the wait before having VAT payment amounts returned, then its more tempting to look abroad/import. Thus far I'd been less inclined to even look abroad with Brexit and import issues in mind.

Edited June 9, 2023 by Bratnia

[Minted]

*Update*

Received a letter from the Border Force in under a week.

VAT is being refunded within 30 days.

However, it looks like I can't get the £12 charge back from ParcelForce.

I could contact EMK and ask them to cover it but I'm fairly sure they'll just say they don't take responsibility for customs in foreign countries.

It does mean the coin ended up costing more than buying from a UK seller, so I'm afraid I won't be using EMK for gold coins again.

Just to clarify for anyone new to PMs, investment gold is VAT free, but silver and platinum are not, so expect to pay VAT on those if bought abroad, as well as in the UK.

[Captinjack]

Interesting read,I have been hit with charges from fed ex for a luner gold proof coin from Perth mint £ 12 fee and £ 106.35 vat...that's an expensive 1/4 ounce of gold!! 

[Minted]

20 hours ago, Captinjack said:

Interesting read,I have been hit with charges from fed ex for a luner gold proof coin from Perth mint £ 12 fee and £ 106.35 vat...that's an expensive 1/4 ounce of gold!! 

Wow!  I haven't risked a 1/4oz from abroad.  £40 on a tenth is more manageable.  As long as that coin is legal tender in Aus (has a face value) it should be VAT free.  I would recommend trying to claim that back. 

You won't be able to use the form linked above as that's only for Royal Mail or Parcel Force.  Looks like you can dispute Fed Ex charges online - My invoice is incorrect, what do I do? (fedex.com)

Edited June 20, 2023 by Minted

[Minted]

VAT refund is in my bank account this morning.  So under 2 weeks from sending the letter to receiving the refund in my case.  I assume timescales can vary but hopefully that gives anyone else a rough idea. 🙂

[Brit2023]

I too looked at the charges and even phoned hmrc, but no concrete answer apart from once the parcel fees are applied you can’t get them back just the vat element if applicable. Seems that the parcel companies can just mess up and then not pay up…..chur-ching

[Captinjack]

I have a bill for import from Perth via fed ex,I have refused to pay and raised a complaint stating the investment angle, up to them now to pursue and prove what needs paying, but lesson learned,I will be purchasing nothing else from abroad...but I did like my proof quarter luner tiger lol.

[Brit2023]

Good ole brexit

[Ignorant]

When importing investment gold from abroad it is of the utmost importance that the sender list the correct tariff code on the customs form. In the EU the tariff code for investment gold is 7108 20 00 00. If the proper code is listed on the form, no taxes, duties or handeling fees should be incurred. Failure to do so will result in extra charges, which can be recouped, with exception of handling fees. So take note to properly instruct the sender beforehand when making a purchase.

[Captinjack]

32 minutes ago, Ignorant said:

When importing investment gold from abroad it is of the utmost importance that the sender list the correct tariff code on the customs form. In the EU the tariff code for investment gold is 7108 20 00 00. If the proper code is listed on the form, no taxes, duties or handeling fees should be incurred. Failure to do so will result in extra charges, which can be recouped, with exception of handling fees. So take note to properly instruct the sender beforehand when making a purchase.

I have told fed ex I have already paid perth mint any taxes due as per my invoice,so they will need to clarify with them,if they want handling fees,well they can work for them,they where paid to deliver an item,I don't get paid twice when I accept a job lol...will see how it goes. 

[Ignorant]

30 minutes ago, Captinjack said:

Retracted.

Edited July 2, 2023 by Ignorant

[Brit2023]

So my question is what are my liabilities if I was to buy in a gold British legal tender coin from Asia?

[Minted]

17 hours ago, Brit2023 said:

So my question is what are my liabilities if I was to buy in a gold British legal tender coin from Asia?

You have to make sure the sender fills out the custom form correctly.  As long as the customs code is correct for VAT-free investment gold then it should fly straight through customs without any extra charges.

[Agaupl]

On 02/07/2023 at 20:05, Captinjack said:

I have told fed ex I have already paid perth mint any taxes due as per my invoice,so they will need to clarify with them,if they want handling fees,well they can work for them,they where paid to deliver an item,I don't get paid twice when I accept a job lol...will see how it goes. 

Fed ex are renowned for this. They bill first. The fault lies with fedex. 
 

im interested in this as I’m doing the opposite. I’m importing a RM 1oz gold into Australia and am just waiting to see what happens. It’s 100% free from tax here but doesn’t mean they won’t try, or that the courier will try. 

[Ignorant]

Importing investment gold duty free from dealers is easy and straightforward. Buying from private seller is a totally different beast and quite complex. Most couriers won’t cover loss or theft of precious metals of any kind, and those that do, have strict packaging guidelines which if not strictly adhered to will render insurance null and void. Many countries have strict guidelines for importing precious metals which if not adhered to may result in permanent seizure of the items. Services that accept precious metals for shipment will often only cover small quantities of it. Registered mail allows for greater control and security and is safest, but the insurance offered by these carriers doesn’t cover precious metals when being shipped internationally. In such cases third party insurance is a must, but it can be tedious to get and can be extremely expensive.

Look before leaping.

Edited July 6, 2023 by Ignorant

[Brit2023]

Hi

what is the correct code for exempt investment gold into the U.K.?

[Minted]

1 hour ago, Brit2023 said:

Hi

what is the correct code for exempt investment gold into the U.K.?

Sure someone will correct me if I'm wrong but I believe the VAT exemption code is 03005.  The commodity code for gold coins is 7118 9000 00.  Use the phrase 'investment gold coin' in the description if you want it to pass through customs easily.

Commodity code 7118900000: Other - UK Integrated Online Tariff - GOV.UK (trade-tariff.service.gov.uk)

[ZigZag]

On 16/06/2023 at 17:12, Minted said:

*Update*

Received a letter from the Border Force in under a week.

VAT is being refunded within 30 days.

However, it looks like I can't get the £12 charge back from ParcelForce.

I could contact EMK and ask them to cover it but I'm fairly sure they'll just say they don't take responsibility for customs in foreign countries.

It does mean the coin ended up costing more than buying from a UK seller, so I'm afraid I won't be using EMK for gold coins again.

Just to clarify for anyone new to PMs, investment gold is VAT free, but silver and platinum are not, so expect to pay VAT on those if bought abroad, as well as in the UK.

Had a similar experience to yours last year with EMK, it beats me why they cannot write “investment gold coin”, those 3 words could save a U.K customer a lot of hassle.

Maybe they can’t be bothered, maybe they don’t care about U.K customers or it’s now insignificant to their overall business. Shame as like yourself, despite their previous good customer service, it’s doubtful I’ll buy off them again.

[sixgun]

Personally if i were in the UK i would always buy my gold in the UK.
If you hunt around the prices are usually as good if not cheaper.

A seller will often be reluctant to declare the item as gold. Members may remember how goldsilver.be would send parcels as medical supplies. They are now sending them as aluminium nails when you order inside the EU. They rap tamper evident tape around the packages and warn buyers not to accept a parcel if there is evidence it has been tampered with. They say never to mention the contents to the courier. This suggests they have had courier problems. So put gold on the customs declaration and you might discover an empty box. 

Couriers are in effect agents of the authorities. They will charge whenever they can and even if they aren't supposed to. It is in their best interests - they collect a fee and stay on the good side of the customs authorities. Many will just pay up and not know how to claim the money back or not bother to. The courier will always keep their handling fee. When i import parcels into Spain i usually get a 15€ handling fee + VAT on the handling fee charge. The actual duty on the goods is often negligible b/c i make sure it is going to be negligible but there is always the handling fee.

So why run the risk of importing and the inevitable charges? - what if the coin isn't right? - dealing with this when the seller is 1000's of miles away makes things much harder. If you buy from a UK dealer you can pick up the phone and speak to someone in good English and sort matters out. i have imported into the UK - i have bought from places like China when i knew the dealer was sound and they were helpful with the customs dec - so only once have i paid VAT and that was much less than it should have been. Having said that, buy British - a few quid extra is worth avoiding all the grief. i know from my business dealings, sellers in the EU don't really want to sell into the UK - so what EMK has done or not done here is par for the course these days.

Edited September 4, 2023 by sixgun

[Ignorant]

On 30/07/2023 at 18:22, sixgun said:

Personally if i were in the UK i would always buy my gold in the UK.
If you hunt around the prices are usually as good if not cheaper.

A seller will often be reluctant to declare the item as gold. Members may remember how goldsilver.be would send parcels as medical supplies. They are now sending them as aluminium nails when you order inside the EU. They rap tamper evidence tape around the packages and warn buyers not to accept a parcel if there is evidence it has been tampered with. They say never to mention the contents to the courier. This suggests they have had courier problems. So put gold on the customs declaration and you might discover an empty box. 

Couriers are in effect agents of the authorities. They will charge whenever they can and even if they aren't supposed to. It is in their best interests - they collect a fee and stay on the good side of the customs authorities. Many will just pay up and not know how to claim the money back or not bother to. The courier will always keep their handling fee. When i import parcels into Spain i usually get a 15€ handling fee + VAT on the handling fee charge. The actual duty on the goods is often negligible b/c i make sure it is going to be negligible but there is always the handling fee.

So why run the risk of importing and the inevitable charges? - what if the coin isn't right? - dealing with this when the seller is 1000's of miles away makes things much harder. If you buy from a UK dealer you can pick up the phone and speak to someone in good English and sort matters out. i have imported into the UK - i have bought from places like China when i knew the dealer was sound and they were helpful with the customs dec - so only once have i paid VAT and that was much less than it should have been. Having said that, buy British - a few quid extra is worth avoiding all the grief. i know from my business dealings, sellers in the EU don't really want to sell into the UK - so what EMK has done or not done here is par for the course these days.

If one isn’t truthful regarding the contents of a parcel on the customs form, and customs discover it contains precious metals, they’ll permanently seize the goods. It’s no laughing matter. Organized crime love to move wealth around in the way of precious metals. So governments don’t take kindly to being lied to. My advice is to never attempt to deceive customs. Besides, if one doesn’t declare the contents as gold on the customs form, how do you intend to recoup the VAT they may end up charging you? If you want to safeguard against theft or loss, that’s what insurance is for. Never try to deceive customs. Or else it may end up costing you dearly.

Plus the exaggerated packaging you referred to, it’s obligatory as dictated by insurance companies. Failure to do so will void all coverage. It’s simply an extra layer of protection to prevent tampering.

Edited August 1, 2023 by Ignorant