This post is for UK and European silver stackers. Unlike our US cousins, we must pay the government for the privilege of converting fiat into silver. It's called the Value Added Tax (VAT). Well, like most things governmental, this has been poorly planned. With a bit of effort this shakedown tax can easily (and I hasten to add, legally) be avoided.
Here's the VAT rates in a few EU and European Free Trade Association (EFTA) countries, and Switzerland which has a separate trade agreement with the EU.
So the upshot here is say if you're a Greek, battered to within an inch of your life by the banksters, and want to get out of the fiat system by buying some silver, guess what, you'll need to pony up 23% extra for the taxman. Nice eh? Not really.
Fortunately there are two big flaws with this VAT tax grab. Which I outline below...
Flaw 1: Originating country delivery rules
EU guidelines say that if goods are sold and delivered locally then local VAT applies, even if the goods are later transported out of the country. Since Estonia and Norway have a VAT rate of zero on silver, Voilà! no VAT payable. That is, as long as the dealer either has someone completely unconnected deliver your silver, or you collect it in person.
Here are some Tallin (Estonia) dealers worth contacting.
CelticGold
Liberty Silver
I've been to Tallin, it's well worth a visit! (Boozer in blue shirt isnt me, my friend Jim, one of five stackers on a little visit to Tallin in 2013)
Plus here's a couple dealers in Norway.
Realverdier
Tavex
Oslo is lovely, though the beer is expensive. If you visit Oslo DO NOT MISS the Viking museum.
Flaw 2: 'Margin scheme' or 'Differential tax' tax laws
If you're willing to travel in person to collect you should definitely consider this option. In Germany and the Netherlands their 19% and 21% VAT rates respectively on silver coins is applied to the dealers profit margin. The Germans call it ‘differential taxation’ and it’s for non-EU coins only. This makes retail level VAT essentially zero. In the UK and Republic of Ireland 'used' silver coins/items can be resold under a similar rule thus also making VAT negligible.
Just get in touch with any dealer in these countries and ask how they apply these local tax rules. I ended up visiting Bessers in Dresden (Germany).
That's me in Dresden, bottom left, being a tourist.
Final random comments:
As you can probably tell, my favourite option is to combine a purchase with a holiday. Ordering online from CelticGold has worked well too
For UK buyers silver Britannia coins are exempt from UK Capital Gains tax. Don’t underestimate this benefit
Market prices (e.g. eBay) typically reflect the VAT cost, so to an extent you do get your VAT back
Dealers are not dumb. They are wise to any tax advantages and adjust their premiums accordingly
In Germany, the differential tax scheme applies to non-EU silver coins only. So the 1oz Canadian Maple Leafs and US Eagles looked attractively priced, but not the Philharmoniker or Britannia coins
For getting your coins back home, see my post on customs rules and border checks
Remember: keep your receipts for when it comes time pay your Capital Gains taxes
Cheers and happy tax-free stacking :)
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