VAT and legal tender coins

If they're legal tender then surely they're treated in exactly the same as any other foreign currency coins or banknotes.

Chris

Who is charging the VAT?

If you mean customs as it crosses the border into the UK, if it counts as a collectable (mostly it's not a gold investment coin) then the margin scheme can apply and a reduced rate of VAT at 5% can apply. I have no idea how you would do this privately, I'd guess HMCR would try and hit for 17.5% if you bought from an overseas website, so importing via a VAT registered entity then buying it off that entity might be worthwhile.

The VAT guide (Section 718) on this is clear as mud as to what happens if you bring a coin in privately and then find it's valuable once in the UK.

On the other hand if you are buying from a dealer in coins and they bought the coin from a private indvidual in the UK and they are using the margin scheme then the VAT is normally only charged on their profit i.e.

Buying price: 700 Selling price 1000 VAT is (1000-700) * 17.5 / 117.5 = 44.68 and the goods were 1000-44.68 so

As far as I can see legal tender doesn't matter. i.e. if it's a coin with an error so counts as a collectible it could still be legal tender in the original country.

In message , Chris Blunt writes

Not if their value to an investor is other than their face value, such as gold sovereign, krugerands etc.,

VAT was abolished on "investment gold" in January 2000. That includes krugerrands, gold sovereigns, other bullion gold coins.

Chris

In message , Chris Blunt writes

I didnt know that, thanks for the info.