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Silver And Vat

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What is the deal with silver and VAT here in the UK.

When you buy silver from an online dealer you end up paying VAT, but what happens when you come to sell silver in regards to VAT?

Any pointers would be greatly appreciated.

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Well hopefully when you go to sell it it will have risen a considerbale amount that you will be way beyond the price + vat that you have paid for it. Just buy it and sit on it for about 4 years.

Edited by wtw2

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Well hopefully when you go to sell it it will have risen a considerbale amount that you will be way beyond the price + vat that you have paid for it. Just buy it and sit on it for about 4 years.

Buy it from Bullionvault. VAT free. But you can't take delivery without incurring the cost.

Edited by tpbeta

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What is the deal with silver and VAT here in the UK.

When you buy silver from an online dealer you end up paying VAT, but what happens when you come to sell silver in regards to VAT?

Any pointers would be greatly appreciated.

look at coininvest for an idea. Look at their buy back,net and gross prices http://www.coininvestdirect.com/en/silver_coins/

When you buy then you pay a premium and vat. When you sell you sell at spot less a percentage or at the price offered.

If you sell on the likes of feebay then most stuff goes at spot or just below what dealers are charging.

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look at coininvest for an idea. Look at their buy back,net and gross prices http://www.coininvestdirect.com/en/silver_coins/

When you buy then you pay a premium and vat. When you sell you sell at spot less a percentage or at the price offered.

If you sell on the likes of feebay then most stuff goes at spot or just below what dealers are charging.

That's not true about eBay. 1kg bars are going for over £700+ atm which is about spot plus VAT.

e.g. http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=130480762111&ssPageName=STRK:MEWAX:IT

You need to remember that there is a premium on physical (nobody gets to buy at spot) and in the UK the VAT is factored into 2nd prices so you shouldn't worry too much.

If you pay spot plus 5% plus VAT then you are getting a decent deal IMO. The bigger the bar the lower the price per ounce generally - there is an additional premium on nice older collectors bars too.

Bars far better value than coins IMO.

If you want to just trade the price then use spread betting or futures. If you want to invest buy physical if you want to be sure you own it. Or buy an ETF otherwise - better value than Bullionvault etc.

Edited by Constable

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Coins which have been in circulation at one time or another are also VAT free as well. I have a silverbalboa having a look at the receipt it said VAT 17.5% - exempt.

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That's not true about eBay. 1kg bars are going for over £700+ atm which is about spot plus VAT.

e.g. http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=130480762111&ssPageName=STRK:MEWAX:IT

You need to remember that there is a premium on physical (nobody gets to buy at spot) and in the UK the VAT is factored into 2nd prices so you shouldn't worry too much.

If you pay spot plus 5% plus VAT then you are getting a decent deal IMO. The bigger the bar the lower the price per ounce generally - there is an additional premium on nice older collectors bars too.

Bars far better value than coins IMO.

If you want to just trade the price then use spread betting or futures. If you want to invest buy physical if you want to be sure you own it. Or buy an ETF otherwise - better value than Bullionvault etc.

I think that if you reread what I said that I am right.

The bar that you linked to went for £750, just short of what it would cost to buy from any dealer.

Some things go for more and others less but bullion always sells on feebay for pretty close to what a dealer like coininvest is selling for.

If I buy a bar for £754 from coininvest now then that includes the vat. If I come to sell in 2 months time when coininvest are selling for £850 then I would expect to get close to £850 on ebay because that would be the current price for the bar, ie it could not be bought elsewhere for cheaper. There is no vat for me to pay and the extra £100 is all profit - less the feebay and paypoo fees ofcourse.

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There is no vat for me to pay and the extra £100 is all profit - less the feebay and paypoo fees ofcourse.

Don't under estimate these, it is 18% ebay+paypal.

Ebay charges you £1.30 for a basic listing + 50p for a listing picture, then charges you 10% upto £40 per item.

Paypal charges you 20p + 3.4% of the selling price.

So for a bar of silver.

£800

£1.80 just to put it on + 30p for buy it now.

£40 final fee

Paypal

3.4% ~ £27.2 + 20p

So your £100 'profit' is more like £30.5

Better to go to a dealer who will buy it for 7% of the spot price so £44 profit - £56 (fee)

Or sell privately, or go to a lower VAT country instead!

Edited by ken_ichikawa

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Don't under estimate these, it is 18% ebay+paypal.

Ebay charges you £1.30 for a basic listing + 50p for a listing picture, then charges you 10% upto £40 per item.

Paypal charges you 20p + 3.4% of the selling price.

So for a bar of silver.

£800

£1.80 just to put it on + 30p for buy it now.

£40 final fee

Paypal

3.4% ~ £27.2 + 20p

So your £100 'profit' is more like £30.5

Better to go to a dealer who will buy it for 7% of the spot price so £44 profit - £56 (fee)

Or sell privately, or go to a lower VAT country instead!

perhaps you missed me referring to them as feebay and paypoo :D

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Don't under estimate these, it is 18% ebay+paypal.

Ebay charges you £1.30 for a basic listing + 50p for a listing picture, then charges you 10% upto £40 per item.

Paypal charges you 20p + 3.4% of the selling price.

So for a bar of silver.

£800

£1.80 just to put it on + 30p for buy it now.

£40 final fee

Paypal

3.4% ~ £27.2 + 20p

So your £100 'profit' is more like £30.5

Better to go to a dealer who will buy it for 7% of the spot price so £44 profit - £56 (fee)

Or sell privately, or go to a lower VAT country instead!

As I said, buy physical if you intend to hold and want definite possession - if you are trying to trade then use a financial instrument with low transaction costs (e.g ETF or futures).

eBay is Ok for buying but the fees make selling bad value.

Just buy and hold and exchange a few bars directly for a big house in a few years time. ;)

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I think that if you reread what I said that I am right.

The bar that you linked to went for £750, just short of what it would cost to buy from any dealer.

Some things go for more and others less but bullion always sells on feebay for pretty close to what a dealer like coininvest is selling for.

If I buy a bar for £754 from coininvest now then that includes the vat. If I come to sell in 2 months time when coininvest are selling for £850 then I would expect to get close to £850 on ebay because that would be the current price for the bar, ie it could not be bought elsewhere for cheaper. There is no vat for me to pay and the extra £100 is all profit - less the feebay and paypoo fees ofcourse.

sorry I misread.

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Ebay stopped allowing this years ago.

Even if you get away with it now you will end up with negative feedback because some genius will b1tch that you ripped him off for the postage when it arrives and only has £5 on the postage label :lol:

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Even if you get away with it now you will end up with negative feedback because some genius will b1tch that you ripped him off for the postage when it arrives and only has £5 on the postage label :lol:

I actually did that in reverse to somebody (needed a part) I paid £3 post and the postage label said £11. The item only cost £4 as well B)

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As I said, buy physical if you intend to hold and want definite possession - if you are trying to trade then use a financial instrument with low transaction costs (e.g ETF or futures).

eBay is Ok for buying but the fees make selling bad value.

Just buy and hold and exchange a few bars directly for a big house in a few years time. ;)

yeah I know.

But look at this

http://cgi.ebay.co.uk/FINE-SILVER-BAR-1kg-for-investment-collector-or-gift_W0QQitemZ170128967390QQcategoryZ3361QQcmdZViewItemQQ_trksidZp5197.m8QQ_trkparmsZalgo%3DSIC%252BMW%26itu%3DUCI%252BUA%252BP%252BFICS%252BUFI%252BIIUM%252BUCC%26otn%3D13%26po%3DLCA%252BLLIW%26ps%3D63%26clkid%3D6949253083455574025

He's sold 7 out of 8 of them for £1330.

When you can buy 1kilo of silver for a shade over £700! :blink:

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I can't imagine he's sold 7 1kg bars at that price... if so I must be in the wrong business!

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I can't imagine he's sold 7 1kg bars at that price... if so I must be in the wrong business!

he has sold 8 now and even if you are in the wrong business, stay there because I am going to list 50 bars now :lol:

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I can't imagine he's sold 7 1kg bars at that price... if so I must be in the wrong business!

Hell I mean you could even list it at that price and have none in stock. The moment you get a sale you can go buy some.

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Hell I mean you could even list it at that price and have none in stock. The moment you get a sale you can go buy some.

people used to do that quite often with coins but they end up with a chit load of neg feedback if the price shoots the wrong way on them and they cant buy for less than they are being paid. They also tend to have problems when stock runs out at dealers.

Anyone mentioning a 10 day or 15 day or post at the end of the month type comment then tell them to go fk themselves.

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  • 312 Brexit, House prices and Summer 2020

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