is vat on silver that important in a global crash

Discussion in 'Silver' started by craig12, Apr 16, 2014.

  1. craig12

    craig12 New Member

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    the main reason I don't get into silver as a uk resident is obviously we have to pay 20% vat extra on silver but not gold, if a economic crash happened on a global scale with Americas debt , should I ignore the fact that we have to pay vat extra, in other words if silver should rise is the vat really a valid reason not to buy
    would stackers just ignore the fact that they have paid more but hold silver should the price spike to the past $40 dollars and above
    would you let the vat add on put you off if you thought you held something better than paper currency
    regards craig
     
  2. 2003dve

    2003dve New Member

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    I don't let the vat stop me stacking, it's only going to be a matter of time before VAT will be all over the EU at 20% anyway and then probably globally with some tax or other, if it moonshots do you reckon they won't tax it more...


    I'll just sell here in uk not to a dealer and add on the vat :)

    Taxing Gold is probably on the agenda too.
     
  3. Danny-boy

    Danny-boy New Member

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    Plenty of VAT free silver available from Europe.
     
  4. Pirocco

    Pirocco Well-Known Member

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    Yea, and I suspect that some dealers suggest VAT while actually there isn't. Maybe those use VAT as excuse for a high spread.
    About VAT in a global crash, who cares 'bout governments in a global crash anyway? A global crash by itself already near-implies people showing their middlefingers to the 'System', including governments. And we should have a :middlefinger: smiley here to make that very clear! :D
     
  5. mr-dead

    mr-dead Member

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    Ive been tempted to start getting a few kg bars but cant bring myself to hand over 20% in VAT.

    I just keep stacking 1/10, 1/4 and 1/2 gold coins.
     
  6. Photonaware

    Photonaware New Member

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    If paying VAT scares you then don't pay 20% VAT.
    There are plenty of German suppliers that get round the VAT issue.
    If selling to UK buyers the VAT is already in the price.
    You only loose out selling to a dealer who strips out the 20% you have paid then uses this to mark up secondhand silver invoicing VAT at zero percent but still selling at the same price as new with 20% VAT added.
     
  7. Pirocco

    Pirocco Well-Known Member

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    The tax on gold sits already in the spot price haha.
     
  8. mr-dead

    mr-dead Member

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    isnt the EU rate for silver now at 19% anyway, coininvestdirect now charging it.
     
  9. Photonaware

    Photonaware New Member

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    The rate in Germany changed from 7% to 19% for coins this year BUT there is some tax loophole that permits differential VAT and I admit to not being clued up on this.
    CoinInvest will charge 19% to most EU countries and 20% to the UK but their sister company Silver-to-Go operates the differential VAT system and is almost VAT free.
    Compare prices - they are the real deal with nothing extra to pay other than shipping.
     
  10. a1nipper

    a1nipper New Member

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    Score one for the U.S.A. zero tax on precious metals
     
  11. Cheepo

    Cheepo New Member

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    When silver will be at $10/oz, the VAT will only be $2/oz. Maybe you can wait for the price to drop, and then start stacking?

    Or you can come to Hong Kong, where there is no VAT. If you buy 300oz at 19.50 you save $1,170, which should cover the flight and some pocket money to spend in Wan Chai: http://travel.cnn.com/hong-kong/drink/wanchai-bar-guide-054732 :D
     
  12. Pirocco

    Pirocco Well-Known Member

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    As far as I can see, German dealers account tax (regardless as VAT or as margin tax) on coins that are imported, and not on coins produced in Germany (alike the Armenia Arch Noah produced by a German company), resulting in a cost shift between coins, before phils maples etc were the cheapest, now the local produced are, possibly (I don't know, needs dealer disclosure) due to a tax element weighting more than the other cost-difference determining elements.
    Some coins became quite more expensive than at a same spot in 2013, others became abit cheaper.
    On the other hand, I've seen such shifts happening in 2012 too, with no tax story 'round it.
    It could be that there is no general rule about where it's the cheapest. It looks like a matter of place and time, meaning that you have to look around to see.
     
  13. whinfell

    whinfell Well-Known Member Silver Stacker

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  14. nicfisher

    nicfisher New Member

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    The German companies pay 7% import tax on non-EU coins, which they can then sell VAT free to the EU. They can not sell the German produced coins VAT free, unless they've been bought from private persons before. This is what I learned, when I bought from www.silver-to-go.com!
     
  15. Bit Baron

    Bit Baron Member

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    Since the rate of VAT is considerable, what is stopping people purchasing unallocated silver internationally?
     

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