VAT charge on gold coin

[Bogart]

Out of the blue this morning I receive a VAT invoice for £300 plus for a gold coin I bought off the Spanish mint months ago.

 

DHL say they paid the VAT on my behalf and now want it off me.

Have told them VAT is not payable on gold.

I know Backyard Bullion had same problem some time ago.

Would you suggest I contact Customs and Excise?

[BackyardBullion]

@Bogart

You can try to challenge them, that would be a good first step. 

Here is the HMRC Guidance on investment gold: 

https://www.gov.uk/guidance/investment-gold-coins-and-vat-notice-70121a

Here is the approved investment gold coins list: 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1076029/VAT_Notice_701-21A_coins_list.ods

Get a little evidence pack together with your invoice when bought, print screens of these with the hyperlinks and send it off. 

If they play silly or dont help you then you should just pay DHL and make a direct claim with HMRC: 

https://www.gov.uk/guidance/how-to-apply-for-a-repayment-of-import-duty-and-vat-if-youve-overpaid-c285

The form you want to fill out is C285 and you will need some information from DHL when you have paid them.

Primarily you will need something called an MRN number and also the port of entry into the UK. 

DHL should be able to supply this information if it is not already on their invoice. 

The C285 form payment takes about 3-4 months to be processed, approved and paid. 

Good luck!

BYB

[arphethean]

12 hours ago, Bogart said:

Out of the blue this morning I receive a VAT invoice for £300 plus for a gold coin I bought off the Spanish mint months ago.

 

DHL say they paid the VAT on my behalf and now want it off me.

Have told them VAT is not payable on gold.

I know Backyard Bullion had same problem some time ago.

Would you suggest I contact Customs and Excise?

What was the premium on it? If high, it may not class as investment gold

[gji25]

13 hours ago, Bogart said:

Out of the blue this morning I receive a VAT invoice for £300 plus for a gold coin I bought off the Spanish mint months ago.

Was it a cgt coin ?. Was it a 10oz coin ? have you spent over the cgt threshold with the said mint. The description is a bit vague imo

[Bogart]

9 hours ago, arphethean said:

What was the premium on it? If high, it may not class as investment gold

Spot plus a few percent nothing outrageous

9 hours ago, gji25 said:

Was it a cgt coin ?. Was it a 10oz coin ? have you spent over the cgt threshold with the said mint. The description is a bit vague imo

No just a 1 oz coin

[arphethean]

Then you should be able to appeal it. Was a commodity code used by the sender? If so what was it?

Edited September 23, 2023 by arphethean

[Bogart]

21 hours ago, BackyardBullion said:

@Bogart

You can try to challenge them, that would be a good first step. 

Here is the HMRC Guidance on investment gold: 

https://www.gov.uk/guidance/investment-gold-coins-and-vat-notice-70121a

Here is the approved investment gold coins list: 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1076029/VAT_Notice_701-21A_coins_list.ods

Get a little evidence pack together with your invoice when bought, print screens of these with the hyperlinks and send it off. 

If they play silly or dont help you then you should just pay DHL and make a direct claim with HMRC: 

https://www.gov.uk/guidance/how-to-apply-for-a-repayment-of-import-duty-and-vat-if-youve-overpaid-c285

The form you want to fill out is C285 and you will need some information from DHL when you have paid them.

Primarily you will need something called an MRN number and also the port of entry into the UK. 

DHL should be able to supply this information if it is not already on their invoice. 

The C285 form payment takes about 3-4 months to be processed, approved and paid. 

Good luck!

BYB

I did get through to HM Customs and Excise, eventually, who said DHL would have used the incorrect Customs Declaration Code, CDC

Appears is laid out in VAT section 701/21 section 8.1 which DHL should be aware of. Sounds like DHL are random in how they list items.

Spoke with supposed DHL UK invoice queries, pointless some woman in India who had no clue whatsoever.

So have documented the details and said to DHL over to you.

Will await developments.

[Ignorant]

3 hours ago, Bogart said:

I did get through to HM Customs and Excise, eventually, who said DHL would have used the incorrect Customs Declaration Code, CDC

Appears is laid out in VAT section 701/21 section 8.1 which DHL should be aware of. Sounds like DHL are random in how they list items.

Spoke with supposed DHL UK invoice queries, pointless some woman in India who had no clue whatsoever.

So have documented the details and said to DHL over to you.

Will await developments.

My guess is that DHL might be doing this on purpose so they still get to charge customers clearance fees. Are you able to verify which customs procedure code the sender used?

Edited September 23, 2023 by Ignorant

[Bogart]

On 23/09/2023 at 13:28, Ignorant said:

My guess is that DHL might be doing this on purpose so they still get to charge customers clearance fees. Are you able to verify which customs procedure code the sender used?

Is it down to the sender?  The Spanish Mint in my eyes tell DHL to deliver to the UK and DHL should have the nonce to use the correct code. 

[Abyss]

I had this happen to me once and after speaking with UPS I had to fill in the attached form and send it back to them in order to avoid a VAT charge...... Once the form was filled in my Gold was released without any further charges....

Investment Gold Declaration.doc

[Arganto]

On 22/09/2023 at 11:30, Bogart said:

Out of the blue this morning I receive a VAT invoice for £300 plus for a gold coin I bought off the Spanish mint months ago.

 

DHL say they paid the VAT on my behalf and now want it off me.

Have told them VAT is not payable on gold.

I know Backyard Bullion had same problem some time ago.

Would you suggest I contact Customs and Excise?

Are DHL holding the item or was it delivered as expected? My apologies if I've missed this point 🌞

[Bogart]

Received the coin months ago.

[Bogart]

Think I can finally lay this matter to rest. Ended up with DHL sending me a veiled threat by email mentioning County Court, cheeky buggars.

Finally got in touch with someone who seemed to know what they were doing, was despairing that anybody at DHL existed about whom I could say that.

I then got a credit note from them for the amount of the invoice  they had sent me. 

Beggars belief they can be so incompetent.

[Allgoldcoins]

I was going to make another thread but saw this one on the subject of VAT being charged on Gold Investment Coins.

 

I think this thread refers to investment coins coming into the UK rather than going out? My experience is with coins going to the EU since BREXIT. I have had and continue to get lots of grief with VAT being wrongly charged on coins which are exempt under UK and EU law.

 

How widespread is this problem? Have you had problems either sending to the EU or receiving coins within the EU with charges being levied.

 

I have carried out some investigations, but before I give my pennies worth, I would be interested in others experiences. 

[Ignorant]

I got charged VAT while importing vat exempt investment gold from the US into the EU. In my case the private individual had filled in the incorrect tariff code on the customs paperwork. But as I suggested in a previous post above couriers might be charging vat on purpose just so they can charge clearance and handling fees which can’t be recouped through a reimbursement claim.

[VGfine]

22 minutes ago, Ignorant said:

I got charged VAT while importing vat exempt investment gold from the US into the EU. In my case the private individual had filled in the incorrect tariff code on the customs paperwork. But as I suggested in a previous post above couriers might be charging vat on purpose just so they can charge clearance and handling fees which can’t be recouped through a reimbursement claim.

I have thought the same, had issues with DHL in the past on imports from Japan ( not PM’s) no tax due as used goods but their handling charge ended up being more than the items value, so I had to kind of double the price of the item in my head first in case they pulled it, that way it was a bonus when it got through.

Edited November 9, 2023 by VGfine

[Bogart]

No idea where they get this handling charge from as the sender has to pay them to deliver it. Basically thieves.

[bluffer]

4 hours ago, Bogart said:

No idea where they get this handling charge from as the sender has to pay them to deliver it. Basically thieves.

ryanair - charge for anything they possibly can. really surprised they havent introduced the coin slot for the toilets yet.

[Olivard]

1 hour ago, bluffer said:

ryanair - charge for anything they possibly can. really surprised they havent introduced the coin slot for the toilets yet.

That was one of their proposals once!

[Guest]

Having bought gold coins from various US sellers I can say it depends how the seller declares it. Sometimes sellers are unwilling to declare "investment gold" because some courier wouldn't insure it. They put something else instead and get caught at the customs.

Sometimes sellers just don't bother to declare and don't even pass your contact details to the delivery company. That's when the deliverers just take liberties

[bluffer]

14 minutes ago, Olivard said:

That was one of their proposals once!

and the "standing" seats to increase capacity....

[Bogart]

Well at least in defence of Ryanair you know the charges at the outset.