Anyone experienced with (silver) bullion?

Question asked by Pete 3 years ago

I have a silver bar owned by my UK company from years ago. I am getting conflicting advice. My previous accountant includes it in my accounts as Fixed Asset Investments, although I bought it as potential cost of sales for manufacturing purposes, I never used it for that.

There seems to be some confusion as to whether I need to charge VAT when selling this. I have spoken to a couple of bullion companies who insist I don't, yet the accountancy advice I have received conflicts.

I did pay VAT when buying it. I now want to sell it, but again the bullion companies say they do not need to pay VAT, nor do I need to charge it. I know that is true of gold, but I didn't think so with silver.

Does anyone know what the actual truth of the matter is?

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2 Replies

Hi Pete,

I am afraid that we don't know much more about VAT and silver. I would advise speaking to an accountant in relation to this.

All the best,

Mohamed.

Best answer
3 years ago

Since posting I have found a few things out and it seems quite tricky situation (and maybe there is even quite a bit of shady dealing going on)

Accountant say yes I must charge VAT which makes sense.

However it seems (incredibly) many bullion dealers aren't VAT registered so will only by from non-VAT sources. e.g. my local jewellers hop said they'll happily pay me £3K but not £3K plus 20% VAT. I bring it in and they give me the cash.

The company I bought got from from will pay me £3.6K provided(obviously) I supply a bona fide VAT invoice.

Another company will also pay me £3.6K provided I supply a bona fide VAT invoiced also my original VAT invoice from when I bought it.

Several other big bullion companies say they won't pay the VAT (maybe there are too many scammers around with fake VAT invoices)

My only problem is the two companies that will pay VAT, are in the Midlands 200 miles away and I have not yet found a courier that will ship bulion insured for anything over 2K.

So maybe best to hang on to it until I happen to passing through Wolverhampton.

3 years ago

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