Change in VAT rate for the sale of silver coins

The cabinet has been engaged in intense discussions over the past few months regarding the increase in VAT on art and culture from 6% to 19%. The Tax Plan has now been officially approved, and it states that as of January 1, 2011, the VAT on imports of art and collectibles will also be increased from 6% to 19%.
 

Margin scheme

Silver coins such as the Maple Leaf or Britannia fall under the category of "collectibles" (coins with some form of collectible value) and are traded by us under the margin scheme. This means that VAT is only paid on the profit margin of the trader, not on the total amount, making the purchase of physical silver much more favorable for you as an investor.
Most coins are imported by us from the United States and Canada. These coins were previously always subject to 6% VAT upon import; however, this rate was increased to 19% as of January 1, 2011. Since the margin scheme is applied, this VAT cannot be reclaimed.
 

Tax plan

On Tuesday, December 1, 2010, the Senate approved the Tax Plan 2011 and the legislative proposal for Other Fiscal Measures 2011. This tax plan includes, among other things, the following:
 
8.1.2 General VAT rate for performing arts and art objects
The following items will be subject to the general rate starting January 1:

• Import of art objects and items for collections and antiques; 
• Delivery of art objects by the creator or an occasional trader.

 
Due to these changes, it is no longer possible to import silver coins cheaply, as 19% VAT will now be charged. As a result, the selling price of silver coins will increase by around 12%. However, the margin scheme can still be applied, so once the coins are resold to The Silver Mountain, they can be traded without having to pay the 19% VAT again. This ensures that the advantage of silver coins over silver bars remains intact.
The price increase of the silver coins will be offset by a higher bid price. If you wish to sell your coins back, you will receive a higher offer than before, with the bid price, like the selling price, ultimately increasing by around 12%. We strive to keep the difference between buying and selling as minimal as possible. Throughout 2011, our bid price will gradually be adjusted. We will not immediately raise our bid price by 12% to avoid receiving more coins than we can purchase. Gold coins that are traded as investment gold are still exempt from VAT, regardless of whether these coins are imported or not.
 

Conclusion

The selling price of silver coins will increase by around 12% due to the change. However, we will also raise our bid price by approximately 12% in 2011. We strive to keep the difference between buying and selling as minimal as possible. Finally, silver coins remain the most favorable option if you, as an individual, want to invest in physical silver.
 
Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be considered as such. Past results do not guarantee future performance.