I've noticed in the "Coin World" weekly paper, the y usually have a page on what the Coin Auctions in London. Usually they have the statement "All prices include the 15 percent buyers premium. They do not reflect the 17.5 percent value added tax added to the premium". What exactly is this? Do all English auctions do this? Who pays and who receives? JonySky
Taxes In answer to your question it is the buyer who pays and it shoud be the government who receives the tax monies. You should find as an American purchasing coins from London you should be exempt from the Value added tax Australia has a (GST) tax that is the same thing. EBay Australia ask that GST be included in the price but overseas buyers are exempt from the tax. If you are buying from an individual this should be no problem just discuss it before payment is made. If you are buying from a dealer, auction house, commercial establishment, discuss this with them up front to avoid paying a tax that you are not accountable for.
Thanks Thanks, I do appreciate the information. seems kinda crappy to get an extra tax just for adding coins to your collection. Do you have extra taxes on other hobbies where you collect something. JonySky
The VAT/GST taxes (Canada has them too) are not just for coins - they are a version of sales tax common throughout Europe and other areas of the world. The worst part of VAT is that it is often imposed on the purchase of raw materials by manufacturers, then compounded on the wholesale prices through the manufacturer-to-retailer chain, and finally again on the retail price, all at much higher rates than any US jurisdiction imposes for sales tax!
We Brits pay VAT on just about everything, from a Pack of Sweets to a bottle of wine. Cigarettes and Petrol are taxed to the max.
Although probably constitutional in the United States under the interstate commerce clause, creating one would not (and could not of itself) get rid of state and local taxes. So it's a political minefield no politician here would dare walk in to.
With those two it's not just the VAT but other taxes too - tobacco tax, etc. As for coins, some are exempt in the EU, mostly what is considered "investment" (usually bullion) coins rather than collectors pieces. As for others, here in DE we currently pay 7% VAT (MWSt) on coins bought from Germany based dealers ... Christian
In Canada,it is not only a federal tax that is imposed,but a provincial Harmonised Sales Tax is also imposed in some Canadian provinces,but not in others.I can guess that the same situation applies to Australia - a federal sales tax,plus a sales tax imposed by the Aussie states themselves. Here in New Zealand,we pay 12-1/2% Goods & Services Tax (G.S.T. or Government Swindle Tax,or as Canadians like to say, 'Gouge & Screw Tax') on just about everything.New Zealanders pay some of the highest airfares,because of the ridiculous levies & surcharges,which the airlines don't usually indicate in their advertising.As soon as the price of oil goes up,so do the surcharges.Lately,the price of a barrel of oil has been going up & down like a yo-yo,but the surcharges still go up.It is ridiculous. Aidan.
Korea is insane on import taxes, particularly on foreign cars. For example, a $24K car here in the US would end up costing a Korean somewhere between $150K -$200K to have it imported to Korea, and only about $5K of that is shipping costs
