VAT advice on importing gold into the UK (Not looking for buyers or sellers)

Nov 12, 2013
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Hi all. Im looking for some help. Im working direct for a mine outside the EU and going to import gold into the UK. The gold does not fall under the investment criteria and as Im not actually buying it myself as we produce it looking for legal ways I can import into the UK and avoid the VAT or at least get the taxable amount reduced. Our customers will not pay the VAT, deferred VAT or any of the other schemes that customs and revenue will allow. Ple

Hoping there is someone out there who knows a route around this for us.

Kind regards
 
Jan 17, 2008
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If you are importing it, you will have to pay all relevant taxes and duties.

If you do not want to pay those, sell it direct to your clients, DDU (Delivered Duty Unpaid) and let them manage these costs.

BTW, you would probably be better speaking to an accountant, as I am sure that there would be a lot more to this than a simple importation!
 
Nov 12, 2013
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Hi Many thanks for your reply. Out clients expect customs cleared goods and will not pay the VAT as duty is not applicable.
Would we need a specialist accountant? We are only selling gold here in the UK but would be happy to set up a UK based company that is VAT registered. Saying that if we did pay the 20% on import and cant collect it from our customers we would lose it anyway?
We would be happy also to export the gold into another country eg Switzerland and then into the UK if that is an option too? As it could be refined to 24+ and therefore not incur any VAT?
Guess we need to find a specialist who has experience in this too? Hopefully someone on here?

Kind regards
 
Jan 17, 2008
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If you are VAT registered, why couldn't you collect from customers? Every other registered business can!!

When importing into the EU, you have to pay VAT/duty when and where the goods are cleared.

When trading, if turnover is under £79k, you will not need to register for VAT.

Most accountants should be able to help!
 
Nov 12, 2013
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Hi We are not registered in the UK. So need to find the best way to get our raw goods into the UK. Obviously we are happy and willing to pay any taxs due. As I said we are not looking to do anything illegal. What is frustrating is that if the gold was refined before we imported it into the UK would not be any VAT as it would be deemed as investment. Ours is 22+ carat but will easily refine to pure gold here in the UK
 
Nov 12, 2013
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There is no duty on Gold
 
Dec 2, 2012
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exemptions for VAT are:
2.2 Exemption
The following supplies are exempt:

(a) A supply of investment gold.

(b) A supply which confers the right to take possession of investment gold. This includes supplies of unallocated investment gold (see section 16), loans, swaps, forward and future contracts concerning investment gold. This does not include options. Also see Notice 701/9 Derivatives and terminal markets.

(c) A supply of services by an agent which consists of attempting to bring about a supply within (a) or (b) above for a named principal, whether or not the agent is successful.

2.1 What is investment gold?
Investment gold is:

(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
  • is, or has been, legal tender in its country of origin, and
  • is 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, or
(c) an investment gold coin as specified in Notice 701/21A Investment gold coins.

Unallocated: gold and gold coins are unallocated if they remain as an unidentifiable part of a larger stock held by a supplier. The supply of unallocated gold or gold coins is a supply of a service for VAT purposes. This service is a financial service for the purposes of the Value Added Tax Act 1994 Schedule 5; it is not, however, an exempt financial service under Group 5 of Schedule 9. Transactions in investment gold may be exempt under Group 15 of Schedule 9.

source:
http://customs.hmrc.gov.uk/channels...d=HMCE_CL_000104&propertyType=document#P9_204
 
Nov 12, 2013
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Hi Lauris. Many Thanks for your help. I have read this and the other information on the HMRC web site pertaining to gold imports.

How do I prove to customs what each client who buys from my import is going to do with each order?
We will be supplying larger companies who will be doing a mixture of both refining the dust into 24+ carat bars for investment and supplying jewelers for their own use.

Wont customs just test the dust and say its 22+ carat and therefore not pure so its going to cost us 20% VAT? They are also a bit of a nightmare asking questions and just refer you back to the "Methods" which basically says if its not for investment, coins etc you pay 20% VAT. One of the methods suggest you work out the cost of producing the dust (gold). Please how would we do this unless there is a set and standard formula for doing this.

One question though if I am reading you right. If we import the 22+carat dust and have it refined here straight away to 24 carat before we sell it, would customs then not charge us the 20% VAT?
 
Jun 11, 2011
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Use some of your gold to hire yourself an accountant.
 
Nov 12, 2013
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Hi Simon. Thanks for the useful advice and of course one that might be aimed at many of the questions people ask on here. But then I would miss out on that lovely learning curve that is the basis of many business projects and picking the brains of the many people on here happy and willing to give their advice and experience to others. Will all be very useful for the future :)
 
Nov 12, 2013
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Hi,
Everything is said in 3.1 how you do it, there is even a pattern letter
It is very simple.

Hi Lauris. We have sent our letter to Customs and Excise. Your information was great and perhaps we were looking into matters more deeply than we should have as the letter seems to have been all we needed to do. However just wanted to check something in advance once more even though you did state. Our product will come into the UK as dust 22+ carat but will be going direct to a refinery to be made into 24+ carat.
At that point according to the rules it will be deemed as investment but will still be so when it enters the UK as 22+ carat?

Many thanks again for your guidance in advance
 
Sorry I missed this as I only checked this forum from time to time.

I do a lot of work re precious metals and investment grade gold, not so much on non-investment grade though.

If you get no joy from HMRC then give me a shout via PM on here (if you don't mind sharing the info publicly) and I will try to advise your best course of action and/or what the VAT law says.
 
Hi all. Im looking for some help. Im working direct for a mine outside the EU and going to import gold into the UK. The gold does not fall under the investment criteria and as Im not actually buying it myself as we produce it looking for legal ways I can import into the UK and avoid the VAT or at least get the taxable amount reduced. Our customers will not pay the VAT, deferred VAT or any of the other schemes that customs and revenue will allow. Ple

Hoping there is someone out there who knows a route around this for us.

Kind regards


Hi Alex, just read your post. Im in a similar position you were in 2013 Are you still in this business? is there any chance we could discuss a few things? Thanks
Katia
 
Hi there,

I am in a similar position, I want to import 22k dore gold into the UK direct from miners to refine and sell on. The HMRC customer services people were very unhelpful and basically told me to read the documentation/information on the website. I have no issue having a UK company that will refine and sell the gold, pay tax on the profits, but I would like to import the raw product without paying a lot of money just to get in to the UK and pay tax on it. Considering Ireland as the rate is 7.5%.

What is the physical process? Customs assess the package as it enters the UK? They hold it until you pay perceived taxes?

Any advice would be great.
many thanks
Steve