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New Vat Rules On Purchasing Coins Outside The UK

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Pillar of the Community
United Kingdom
2414 Posts
 Posted 04/01/2021  08:47 am Show Profile   Bookmark this topic Add Bacchus2 to your friends list Get a Link to this Message
Hi,
Not a coin post but one specific to the UK and buying coins from abroad.

From the start of the year eBay have been adding 20% VAT onto all sales of coins from outside the UK. This means if I buy a coin, of any value, from the US, EU or Asia I get hit with a 20% VAT surcharge. For me, this effectively stops all non UK eBay coin purchases.

Apparently the same rule will be brought in for the EU in July - it's not Brexit related.

Has anyone else been affected?
Edited by Bacchus2
04/01/2021 09:26 am
Pillar of the Community
United Kingdom
8514 Posts
 Posted 04/01/2021  12:53 pm  Show Profile   Check NumisRob's eBay Listings Bookmark this reply Add NumisRob to your friends list Get a Link to this Reply
I hadn't realised that, Bacchus2 - thanks for the warning!
New Member
United Kingdom
27 Posts
 Posted 04/01/2021  3:28 pm  Show Profile   Bookmark this reply Add saxon to your friends list Get a Link to this Reply
I've paid vat on a couple of overseas orders this year. Both from European dealers and ebay
Pillar of the Community
United Kingdom
1038 Posts
 Posted 04/01/2021  5:06 pm  Show Profile   Bookmark this reply Add andyg to your friends list Get a Link to this Reply
yes - It was to be EU wide but Brexit reduced the area which you can import VAT free to just the UK. We always had to pay VAT on items which cost more than a certain amount (32?) from further afield, this had been reduced some latterly - but it is now set at 0. Gifts can still be sent VAT free as long as they are less than a certain amount (39?)
Pillar of the Community
United Kingdom
1521 Posts
 Posted 04/03/2021  06:11 am  Show Profile   Bookmark this reply Add kena to your friends list Get a Link to this Reply
Maybe this will help explain what happens now - https://www.gov.uk/goods-sent-from-...tax-and-duty

Basically puts the England, Scotland, and Wales on the same playing field with the EU as we have with the rest of the world.

What is interesting is that a friend of mine in the USA can send me a gift, only if the business name is not included on address. I was able to lobby against the vat charge the one time the business name was on the parcel but not the 8 handling fee.

So buying from Ebay would be considered a business transaction and therefore the item can't be sent as a gift/tax free into the UK.

The same is true of buying silver bullion now from European dealers since before even with postage with the lower vat on silver bullion meant lower prices than what a UK dealer could do. UK leaving the EU seems to have made things a level playing field.
CCF member Member Since: 07/27/2008
Pillar of the Community
United Kingdom
2414 Posts
 Posted 04/05/2021  03:00 am  Show Profile   Bookmark this reply Add Bacchus2 to your friends list Get a Link to this Reply
It seems as if eBay is basically acting as the VAT collector for HMRC. I hope no packages get seized by customs and they try to impose further charges when VAT has already been paid. I buy mostly from Asian dealers so this new extra charge going via the ebay path that was introduced makes everything 1/5 more - which is too much.
I live in Northern Ireland - so for these purposes NI is being treated the same as GB. I'm really unclear how this is all going to pan out with us being treated as being in the EU for some issues.
Edited by Bacchus2
04/05/2021 03:01 am
Valued Member
United Kingdom
465 Posts
 Posted 04/07/2021  09:44 am  Show Profile   Bookmark this reply Add zookeeperz to your friends list Get a Link to this Reply
Does that mean when you advertise a coin on ebay. ebay will add that foot note I see on every foreign sales +20% vat will be added? Or is it just us who has to pay vat? Coz if it were left to me I would add it on the price of the coins . What's good for the goose is good for the gander :)
Pillar of the Community
United Kingdom
1038 Posts
 Posted 04/07/2021  2:44 pm  Show Profile   Bookmark this reply Add andyg to your friends list Get a Link to this Reply
yes, 20% is added to coins from abroad if buying on ebay - and 20% is added to any UK listings if they are sold to the EU - this money goes to the relevant tax authorities not the sellers.
Pillar of the Community
United Kingdom
796 Posts
 Posted 04/10/2021  06:47 am  Show Profile   Bookmark this reply Add Tom Goodheart to your friends list Get a Link to this Reply
I find this interesting. I buy hammered coins. Which previously were liable to a reduced rate of vat at 5% under coding 9705 00 00 as "Collections or collectors' pieces of [..] numismatic interest."

When I tried to look up the new coding on the HMG website it gave me pretty much the same information (there were additional digits depending on the metal, but essentially the same code).

Rather like the vat on books (also 5% afaik) it sounds as if eBay are overcharging. (Which is what they used to do with the blanket charges under their Global Shipping scheme.)

Obviously, vat is separate from import duty. But what I've bought has generally been exempt from that in the past.

Anyone know different? Have things changed?
Pillar of the Community
United Kingdom
2414 Posts
 Posted 04/15/2021  04:02 am  Show Profile   Bookmark this reply Add Bacchus2 to your friends list Get a Link to this Reply
I'm afraid I don't know of any specific VAT exemptions but I suspect EBay has just taken the easiest (cheapest to implement) option and coded in 20% to all sales from abroad to the UK buyers. Perhaps it will get refined as time goes on - but without complaints etc I doubt they will do anything.
Pillar of the Community
United Kingdom
1038 Posts
 Posted 04/15/2021  5:04 pm  Show Profile   Bookmark this reply Add andyg to your friends list Get a Link to this Reply
Should you buy coins not from ebay, then if they come through the post properly with a customs declaration 20% is charged by the post office before you can have them... and just to add insult to injury they add a flat 8 fee for doing so. I've been caught out once or twice on things from the US, but now it is everywhere. At the moment customs are / were waving things though due to the Brexit disruption, it remains to be seen how long this will last.

By adding the 20% at the auction checkout Ebay are actually saving you the 8 fee that would be payable along with the 20% on import.
Pillar of the Community
United Kingdom
2414 Posts
 Posted 04/16/2021  01:44 am  Show Profile   Bookmark this reply Add Bacchus2 to your friends list Get a Link to this Reply
If that's the case - that will pretty well end my coin collecting. Most of my coins come from Asian dealers.
Valued Member
United Kingdom
465 Posts
 Posted 04/16/2021  04:07 am  Show Profile   Bookmark this reply Add zookeeperz to your friends list Get a Link to this Reply
Just to add I buy from many dealers from overseas and so far only ebay has decided they are somehow the V.A.T police. I am sorry but ebay are an auction platform they have no legal authority to impose V.A.T charges. But ebay being ebay they do think they are the Law which has in the past cost them a lot of money .
Just because they have terms and conditions it doesn't mean it is actual statute law as I have reminded them before to their cost.
They might get away with their antics on the continent sitting all snug and smug in their tax haven of Luxembourg which is kind of ironic lol. But dare they try to impose that on the UK and it will bite them in the you know where.
I would actually go as far as saying ebay is complicit with the fraud perpetrated daily on a massive scale on their platform and it isn't a case of the odd isolated incident.
Least I remind you that they advertise on British TV and you have to be squeaky clean to get airtime so it beggars belief that they have somehow pulled the wool over the corporate media's eyes. Touting for business to the mass TV audience who will unsuspectingly and without a shadow of a doubt purchase crap/fake items from their platform.

I think they need to get their own house in order before they start acting as some kind of Lap dog for the VAT man ( rant over sorry)
Pillar of the Community
United States
7911 Posts
 Posted 04/16/2021  04:41 am  Show Profile   Check westcoin's eBay Listings Bookmark this reply Add westcoin to your friends list Get a Link to this Reply
This isn't going to be good, darn it. I just found a dealer in Whales that has a bunch of items I really like and would consider purchasing. I suppose I need to contact them to see what they say. I live in the United States in a state that has no tax on any coins or bullion sales. eBay still charges tax on almost every coin I buy in the USA. It seem they are covering their backsides on the tax side regardless what the individual state tax rules are.
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Pillar of the Community
United Kingdom
1915 Posts
 Posted 04/16/2021  05:57 am  Show Profile   Bookmark this reply Add Pertinax to your friends list Get a Link to this Reply

Quote:
Rather like the vat on books (also 5% afaik)


I thought books were exempt or the VAT rate was 0% in the UK.

If you're in the UK, it might be worth writing to your MP to point out that eBay is charging VAT and asking if they're paying it to HMRC.
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Pillar of the Community
United Kingdom
1038 Posts
 Posted 04/16/2021  2:03 pm  Show Profile   Bookmark this reply Add andyg to your friends list Get a Link to this Reply
Best to write to HM government - they changed the rules!
I've no idea on importing things into the US, the rules I've written about are for importing commercial purchases into the UK. We always had to pay tax (if caught by the post office) for items above 15 from outside the EU, this is the limit that has changed - it's now 0 and as we are no longer in the EU from everywhere.

More here;
https://simplyvat.com/will-amazon-a...post-brexit/

HM government instructed Ebay to collect the VAT....
Edited by andyg
04/16/2021 2:11 pm
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