Sell your scrap gold for cash.
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This publication is available at https: Details of any changes to the previous version can be found in paragraph 1. Gold can be used for investment and industrial purposes. For investment purposes, gold is minted or transformed into coins, ingots, bars and wafers as a store of value and a hedge against inflation.
This notice explains how you should treat supplies, acquisitions and imports gold traders uk gold and investment gold for VAT purposes. Investment gold is exempt from VAT, subject to an option to tax. Gold traders uk you are interested in opting to tax your supplies you need to read section gold traders uk.
This includes supplies of unallocated investment gold see section 16loans, swaps, forward and future contracts concerning investment gold.
This does not include gold traders uk. If you are required to notify that you trade in investment gold and you are not registered for VAT, you must also provide the following information:. The Gold Team will send you an acknowledgement. If, however you do not receive this within 28 days, you must check that they have received your notification. You do not need to notify us of subsequent supplies. In accordance with the requirements outlined in paragraph 3. Gold traders uk am not registered for VAT; the details requested in paragraph 3.
You may wish to opt to tax a supply of investment gold because you can then reclaim all input tax directly attributable to that supply. You may only opt to tax supplies of investment gold see paragraph 2. You may also opt to tax investment gold coins if you produce the coins gold traders uk. Supplies of investment gold to non-taxable persons will always be exempt.
As long as you are a taxable person you may opt to tax any supply of investment gold to another taxable person. You must notify your local Business Advice Centre if you intend to opt to tax. If you do not receive an acknowledgement within 28 days, you must check that they have received the notification.
If you are a taxable person, who as a normal part of your business supplies gold for industrial purposes, you may only opt to tax certain supplies of investment gold, but you need to get our agreement first.
To get our agreement to you opting to tax your supplies of investment gold, you must write to your local Business Advice Centre, giving your VAT registration number and confirming that you normally trade gold traders uk gold for industrial purposes. If they agree they will send you a letter of approval within 28 days.
They will normally impose conditions and the letter will also explain what these are and tell you when you can gold traders uk opting.
We will accept that you normally supply investment gold for industrial purposes if you can show that you do so on a regular basis. Once you have received our agreement, you may opt to tax supplies of investment gold bars or wafers you make to other taxable persons. You must inform your local Business Advice Gold traders uk that you intend to opt to tax your services. As opting to tax a transaction is simple - once you have fulfilled the conditions in paragraph 4.
But please note that once you have opted to tax a particular supply you cannot change your mind and exempt it. If you intend to opt to tax you should also read section 11 of this notice which explains how to account for VAT.
If you opt to tax a particular supply of investment gold see section 4 you will be able to reclaim gold traders uk the related input tax as you will be making a taxable supply of investment gold. To reclaim all your input tax you will need to be able to show that none of your input tax relates to any exempt supplies of investment gold.
If you make exempt supplies and are registered for VAT, you may not be able to reclaim all of the input tax you incur. Normally you can only reclaim input tax incurred on goods and services used, or to be used, in making taxable supplies. You will find more about gold traders uk in Notice Partial exemption.
But, there are special rules gold traders uk reclaiming input tax you incur on some of the goods and services that are directly attributable to gold traders uk exempt supplies of investment gold. If you are going to make exempt gold traders uk of investment gold you may reclaim input tax on the following directly related goods and services:. If you actually produce or transform any gold into investment gold yourself, you may also gold traders uk the input tax you incur on related goods and services.
But only to the extent that they are linked to the production or transformation process. You cannot reclaim any input tax that is not linked to the production or transformation process.
For example, you cannot reclaim input tax on a computer used for recording exempt sales of investment gold. If you use a building for the production of exempt investment gold, and an area is set aside for the sale of that investment gold, the input tax on the building will have to be split to reflect the fact gold traders uk only a part of it is linked gold traders uk the production of the investment gold.
Under the normal rules for partial exemption you must attribute input tax on any goods and services exclusively used to make taxable and exempt supplies, directly to those supplies. Any residual input tax has to be apportioned between the supplies.
Since there is a limited right to deduct input tax directly attributable to exempt investment gold, when it comes to apportioning residual input gold traders uk, the normal partial exemption rules will not fully identify the correct amount to be reclaimed.
This is because attribution to the supply alone will not determine the extent that VAT is allowable. There has to be a further stage to identify allowable input tax. Therefore you will not be able to use the standard partial exemption method and will have to work out separately how much input tax incurred in respect of any exempt supplies of investment gold can be reclaimed.
A business buys a new building on which it is charged VAT. Part of the building is to be used to produce exempt investment gold, other gold and silver. Part is set aside as a sales area for these goods and part is rented out an exempt supply. VAT on the building relates to:. To know how much VAT the business can reclaim, it will have to work out to what extent the building is to be used to make the supplies of the non-investment gold and silver, the extent that it is to be used to make the supplies of exempt rental and the extent that the building is to be used to make the supplies of exempt investment gold including an element of the sales area.
Having identified an element that gold traders uk to the supplies of investment gold, the business will then have to work gold traders uk how much of this actually relates to the production of that investment gold. This can be claimed in addition to the part that relates to the production and sales of the other gold and the silver.
There gold traders uk special notification, invoicing, accounting and record keeping requirements for persons who trade in exempt investment gold. If you do not meet your notification, invoicing, accounting and record keeping obligations you may become liable for a penalty. The requirements and penalties apply whether or not you are registered or liable to be registered for VAT. It must contain all of the relevant details specified in paragraph 6.
Also, the invoice must include the following declaration which must be signed by the seller: If you sell investment gold on which you have charged VAT for example, because you have opted to tax you must comply with all the normal invoicing requirements for taxable transactions, see Notice The VAT Guide and the requirements of the special accounting scheme for gold see paragraph If you gold traders uk taxable items including gold and exempt investment gold together you may include all the items on the same invoice, provided the invoice contains all the appropriate details.
If you sell exempt investment gold which is gold traders uk or available gold traders uk be taken away by your customer, you must keep the following information as part of your business records. These requirements do not apply if you make supplies described within paragraphs 7.
This applies whether or not you are registered for VAT. You must keep and maintain a record showing the following details:. You must keep and maintain a gold traders uk identifying customers who purchase exempt investment gold traders uk. This record must have a unique reference number and contain the following information:.
You must take reasonable steps to make sure that your customer has given you correct information. In order to do this, you must ask for and examine at least one document from each of the following lists.
You may agree alternative satisfactory evidence with your local Business Advice Centre. If possible, you should keep a copy of the documents you see. You must sign and date this declaration. If it is not possible to keep a copy of the document you see, you must record, as part of your customer record, sufficient details to let us to obtain a copy if we ask.
As a minimum you should record:. You must insist that your customer produces the original document. You must keep the record up to date. Where you are required to keep and maintain the records specified in parts a and b of this paragraph you may, as an alternative, keep and maintain the details required in a manner which is convenient for your business provided:.
If you are a bank or other financial service business which, for the purposes of the Money Laundering Regulations S. Relevant financial businesses to which this applies must conduct the appropriate identification procedures and keep the required records in the case of all transactions in investment gold where the value of a one-off transaction exceeds 15, euro or, where one-off transactions appear linked and their value together exceeds 15, euro.
If, as an agent or auctioneer, you invoice goods in your own name for goods sold on behalf of a third party vendor, the goods are treated for VAT purposes as supplies both to and by you.
Auctioneers are treated as agents for VAT purposes. It is important not to confuse the supply of the goods with the supply of services to the seller or the buyer. As an agent or auctioneer, gold traders uk are treated as if you were supplying the goods yourself.
The special scheme applies to you in the same way as it would apply to a principal. Supplies involving investment gold or investment gold coins will be exempt, unless you are selling gold upon which an option to tax has been exercised. For more information about opting to tax see section 4. The auctioneer will also have the same rights of deduction see section 5 and is bound by the same notification, record keeping and accounting obligations see sections 6, 7, and 8.
It is important that you check with the vendor before the sale whether the gold being sold is investment gold. If you are an agent or auctioneer acting in your own name, your supply of services to either the buyer or the seller will be taxable. If, as an agent or auctioneer, you sell and invoice the goods in the name of your principal, your supply will be exempt see paragraph 2.
You may opt to tax these services, if you are registered for VAT and your principal also opts to tax his onward supply of the investment gold see paragraph 4.