Germany silver tax

http://armstrongeconomics.com/2013/10/26/silver-subject-to-19-taxation-as-of-january-1st-2014/

 

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Schade!

 

Now why would the eurogoobers tax silver and not gold? hmmmm silver is 22 an ounce, gold is almost 1400, seems to me that a 5% tax on gold would raise more revenue than a 19% tax on silver, unless they have some other motive other than raising revenue.

 

Since I am in DE, this is not anything that I am happy about - then again, that is not a "silver tax" as that article insinuates. The decision, which was indeed made in mid-June, simply does away with the special conditions for silver coins. The federal government had planned to change that much earlier:

I first read articles about such plans in October 2002 (!), and in 2010 the Federal Audit Office (Bundesrechnungshof) complained about the "reduced rates jungle". If you buy a silver bar or a silver medal, you currently have a 19% tax rate - only for silver coins it is 7%. As from 1 January, it will be 19% for coins, medals and bars.

Christian

 

So is this a "buyers" tax or a "sellers" tax; i.e, does the buyer pay it upon purchase or does the seller pay on sale (I know this may be a moot difference)? Also, what does it do for existing inventory? If inventory is taxed, then we might expect to see some silver hit the market in advance of the new year.

 

Sorry, I'm not a taxation expert. The VAT is a tax that the "end consumer" pays. If you have a business in the EU, you will usually have a VAT ID - and if a coin dealer buys pieces from a mint or a distributor, and provides that ID, no VAT will be charged. Now if that dealer sells one of these coins to a collector, he will charge for the item, shipping, but also the VAT. The collector pays, the dealer pays the collected VAT to the German Finanzamt (sort of IRS). See http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/ All I know is that these days quite a few people here buy silver coins, as prices are likely to go up for those, due to the new tax rate ...

Christian

 

I was charged 19% EUSt tax only last week when receiving a seated half dollar from the US. DHL was the proxy so I had to pay them to get the coin. That was the first time this happened to me, most of the other coins are hold back at customs but once I get there they give them to me free of charge. I am still unsure if no taxes should apply or whether there's a 7% tax for silver coins, but I am pretty sure 19% is wrong.

 

In a few cases the 19% import tax (EUSt) on silver coins even applies today. As I wrote, usually it's 7 until the end of this year, but the rate depends on various factors, and there are various TARIC codes (Warennummer) for coins. Whether customs picked the right one (ie. 19% is correct) or the wrong one (ie. 7% would have been correct) ... ah well, don't ask me. No EUSt? Quite unlikely, except for items worth less than €22.

Christian

 

Please read carefully US members. This is where we are headed at a very rapid clip the path we are on.

 

Keep in mind that we are talking about two somewhat different issues here. First somebody claims that this is about some "silver tax" which is wrong - it's about doing away with different tax rates for silver coins and silver medals. Now it is what people pay in terms of import tax. But I guess that, when it comes to taxes, getting political can hardly be avoided ...

Christian

 

I was trying to stay out of the politics of it sir, simply saying this type of VAT tax has already been proposed here in the US, (everyone can guess from which side). Of course, they "promise" it will be at low rate, but we all know what happens once a new tax is adopted. Magically, it seems, the rate always goes up.

VAT is a pretty horrible tax due to its effects. Its such a high transaction tax that it truly does slow down the economy to a large degree. In large part its responsible for the perpetual anemic growth Europe experiences versus other economies.

 

Yes, I am aware of the fact that the VAT in the EU is not precisely the same as the sales tax (and whatever the cities etc. may add) in the US. I was merely trying to state why, regarding DE, the headline "Silver Subject to 19% Taxation as of January 1st, 2014" is not correct.

Christian

 

Here (California), there's a 7.5% (or something close) state sales tax on most everything non-core food... including PM purchase transactions under $1,500. PM transactions over $1,500 are considered 'investments' and thus, not taxed by the state. There's also a use tax, so, if you bought PM online (less than $1,500) from an out of state vendor and they didn't charge you state tax, I believe you have to calculate and include the tax on yearly state income tax filing.

I guess I feel fortunate to at least have the option to avoid state tax by purchasing $1,500 or more in PM.

The 19% VAT on silver seems pretty surreal to me. Still, you might have other things better there where we have it worse here (quality of life)

 

There are various things in the US that I find surreal. But I don't think this is the right place to discuss any of these ... Anyway, this is a "silver tax" just as it is a brass or copper-nickel tax. The whole point is that the special rate (which usually applies to foods and such) will no longer apply to coins.

Christian

 

Still no sales tax on gold and silver coins in Michigan.

(About 10 years ago, Ohio was in the same position, but a scandal involving campaigns and Republicans made the legislature mad and they took away that exemption. )

Texas just lifted its 8% sales tax from gold and silver coins less than $1000.
"Previously, the law allowed higher-income Texans to save and invest in precious metals without a tax penalty because it dropped sales taxes if the purchase was more than $1,000, Simpson said." Read here.

Taxes in the US are largely local and state. We have few direct federal taxes except the income tax and fuel taxes (18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel).

 

Don't forget about corporate taxes. Oh, and Social Security and Medicaid tax. Oh yeah and Estate and Gift taxes (those are my favorite because you can be dead and they will still tax you). Oh and there's the Alternative Minimum Tax a.k.a. the "just in case you aren't paying enough taxes" tax.

I sure hope that there will never be a buyers tax imposed on silver here in the US at the federal level. Would immediately reduce the value of all of your silver holdings in my opinion. And 19% is horrific... sheesh.

 

Ninteen percent is better than the other 19. "Let me tell you how it will be, there's one for you, ninteen for me..." Taxman Beatles

 

Have fun discussing how terrible Europe is, or how doing away with the reduced rate for coins suddenly becomes a "silver tax". But try and find an appropriate location for it, OK?

Christian

 

If my title "German Silver Tax" was inappropriate then I apologise. Maybe you should do the same. A moderator exerting his authority to bolster, protect or project his point of view, is also inappropriate.

 

SSUTA and The Market Place Fairness Act will change the landscape.