Gold Coins Import VAT

[SeverinDigsSovereigns]

Apologies if this has already appeared in the forum many times before. Whilst many on this forum will no doubt have been familiar with importing gold coins into UK this might be beneficial for members newer to gold (especially those who only just started looking at collectible gold coins).

So recently I received a notification from UPS about customs clearance. The seller had declared that the coin was sold as a collectors' item (VAT Notice 718 paragraph 20.1) which was subject to 5% VAT at import.

I did some research on this matter. The rules on these could sometimes be confusing, and you may find contradiction suggestions on the internet. I think it helps if I could explain my thinking here.

According to VAT Notice 701/21 section 2:

Investment gold is either:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets

(b) a gold coin minted after 1800 that is:

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

(c) an investment gold coin as specified in Investment gold coins (VAT Notice 701/21A).

Noting the way the word "either" is used. 701/21 provides the ground of "investment gold" being VAT free, and 701/21A in turn provides the ground of gold coins being classified as "investment gold" A rule of thumb is that a document is general unless otherwise stated.  VAT notice 701/21A otherwise states that:

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

b. A gold coin on the lists in section 3.

A coin not on the lists can still be exempt from VAT if it falls within the description at 2.1a. But you must be able to show from your business records that any such coin meets the criteria.

You should treat coins that do not fall within 2.1a. or 2.1b. as subject to VAT at the standard rate*.

Which means 1) as long as your coin appears on the spreadsheet in section 3 701/21A it's exempt from VAT (and that covers most modern milled coins). 2) coins that do not appear on the spreadsheet but nevertheless meet the three point criteria in 2.1a.

2.1a is further supplemented by paragraphs 2.2-2.4 which define "selling price" and "normal selling price". Where "...a description of coin that is normally sold at...(2.1a)" the description is the general type of the coin, e.g. sovereign, regardless of design and year (in other words, an 1841 shield, a 1920-S, and a 2022 Jubilee sovereigns are treated as the same). Paragraphs 2.3-2.4 provides such grounds that all sovereigns, regardless of condition and rarity, and consequently prices, be treated as VAT exempt investment gold coin as long as a typical sovereign is sold at under 180% of spot. 

In plain English, as long as your gold coin appears on the spreadsheet it's investment gold and VAT free.

*Few modern strikes are unfortunately enough to fall short of that. In theory, other gold coins attract the standard VAT rate of 20%. In practice, they're most likely something made 100 years ago (e.g. ducats, solidi, dinars, etc) and fall under the "collectors' items of numismatic interest" (VAT Notice 718 paragraph 20.1) and have a rate of 5%, not 20%.

Edited November 15, 2023 by SeverinDigsSovereigns

[Brit2023]

So I’m looking at a slabbed gold brit from the USA. What customs code do they honestly need to put on for me to not get stung with additional charges?

Also what additional charges am I liable for?

I am a private buyer not a company

[SeverinDigsSovereigns]

6 hours ago, Brit2023 said:

So I’m looking at a slabbed gold brit from the USA. What customs code do they honestly need to put on for me to not get stung with additional charges?

Also what additional charges am I liable for?

I am a private buyer not a company

Whatever code for investment gold (I think 71189000), and no charge should be payable. Because you are a private individual you may need to appoint the courier to clear the customs on your behalf as an EORI number is needed