I have never paid GST on Bullion silver legal tender coins? How can you charge GST on money? This would mean that your income would be taxed an additional GST and every penny you withdrew from a bank would be subject to that same GST. Looks like Bullion coins have another plus
GST is certainly a consumption tax, The Murray Report suggests all financial services have a GST added as currently they are GST exempt. (Financial services is very broad). While it shouldn't be applied to investment and other financial services - this is the government we are talking about, stupid rules the roost.
Correct, depending on what form they are purchased in. While bullion is currently GST exempt, capitol gains tax does apply. Proof coins attract a GST, but are capitol gains tax exempt.
I imagine that it's a little like food, fresh is exempt whilst processed is taxed. Silver bullion is exempt whereas the moment it goes into a solar panel it incurs GST. They may extend this to say a 1kg bullion bar is exempt but 1oz rounds are not as they are processed down to a collectable. Who knows how they may weasel the money from us.
the end user only pays GST. It was brought in, to counter the effects of large businesses not paying any.(tax) So, we all suffer. I see it as a 10% pay rise ! plus, at the same time, they dispensed with sales tax, which was 22% at the time. How do you think alcohol became so cheap ?
Stupid? They want to get other peoples money so that they can buy what they produce, and they do that 'job' well. There is alot talk about tax on silver in the dealers sphere, but except for a few specialties in low amounts, I've yet to see my first "common" bullion order with on the invoice a tax item other than the one on the shipping. In the beginning I thought I paid tax because the dealersite suggested it all the way, but later on I noticed that his difference with the spot price was the same as dealers in the US's no tax case. Very likely dealers use tax as an excuse replacement for the profit margin they raised. But there are choices out there, just like with supermarkets, and after discovering a dealer that sells without tax, and even explicitly states it on his invoices, I only buy there. And he's even a local one. There are other local ones that sell the same bullion yet claim tax. Says it all?
Just my 2cents worth, FYI - not all EU/EFTA (European Free Trade Association) countries charge outrageous VAT on silver coins. Netherlands and Germany apply whats called "differential tax" or "VAT on margin", ie. the VAT is applied to the dealers markup not the total price. So in effect, making it a very small charge to the buyer. Also, Estonia and Norway have 0% tax on silver coins, but you must pick it up in person or have it separately couriered. Switzerland applies VAT as normal but its relatively low at 8% RH
In Britain the law on numismatics is actually pretty sensible (not taking a stance on the tax itself but on how they reckon it). The numismatic/bullion determination is based on whether the coin is sold at 180% of its spot value. I believe this is regardless of the fineness of the coin so non collectible sovereigns, for example, are not taxed where they are here because they aren't .999 (9?). Having said that I think plenty of "investment" grade 22k or .900 coins don't have tax collected on them because even done dealers/jewelers don't realise they have to. The current tax ruling is a little odd though: "24. Section 195-1 provides that second-hand goods do not include: a. precious metal; b. goods to the extent that they consist of gold, silver, platinum, or any other substance which, if it were of the required fineness, would be precious metal; or c. animal or plants." I don't quite understand the distinction they are trying to draw between previous metals and gold, silver and platinum of a certain finnes.
a means precious metal in common forms (bullion as bars and coins, with a minimum % purity, 925 or 999 dunno) b basically treats any object made of such purity bullion as a precious metal. b is probably to route out tax evasion along various objects / ornaments, so that if you'd make a golden horse, the horse being the key property, yet treated as precious metal to tax.
Is there something different for granule silver? Goldtrex Granule 1kg Silver + GST = $677.44 aud + GST = $746.19 Subtotal - $677.44 Deposit 10.00% - $67.74 Surcharge on deposit 1.5% - $1.02 TOTAL DEPOSIT payable - $68.76 BALANCE DUE AFTER DEPOSIT (without GST) - $609.69 GRAND TOTAL (without GST) - $678.45 GST - $67.74
never can resist a bit of a jab at the good old big L and Mr budgie smuggler but I am sure that the closet big L stackers wont shot em selves in the foot, so no need to worry
Granules attract GST even if pure 999, gold also. When it is made into bullion and stamped 999 either bar or coin it is then GST exempt, Crazy I know!
