Update January 2nd 2014: The amendmends below were not put into force by January 1st 2014. The new law would have no effect VAT on the silver coins traded on celticgold.eu. It would have meant: Business as usual for us.
For now it means business as usual as the current and old rulings say that silver coins are VAT free. But the question is when a new changed law will be put info force and how this will effect the traded silver coins.
Tax rulings are always very complex; so I won't go into more detail here on the website. Please be sure and safe: NO Vat on silver - Business as usual. And as soon as the situation may change we will update everyone.
Yesterday we received the answer from the tax authority to our request to explain how the planned law amendments will affect the business of the CelticGold AG branch in Estonia, more specifically - how will the amendment affect the taxation of silver coins?
Currently, Article 17(1) 3) of the Estonian VAT Act exempts from VAT the importation of all banknotes and coins. From 1st January 2014 the exemption stipulated in Article 17(1) 3) will be restricted to banknotes and coins which have the exchange rate of the European Central Bank. Consequently, the same applies to the Intra-Community acquisitions. The amendment has passed the first reading in the parliament and is expected to enter into force from 1st January 2014.
The answer of the tax authority was very short. They answered that "If the silver coins sold are legal tender in their countries of issue and their nominal value is convertible into euros according to the rate of European Central Bank then the sale of such coins will be exempt of VAT also after 1st January 2014. All the other silver coins which do not have the conversion rate to euro will, after the entering into force of the amendment of the VAT Act, be taxed as ordinary goods."
CelticGold offers only the exempted Silver coins which will remain VAT free after January 1st 2014
There are some pitfalls in the above rulings as there are "legal tender" silver products available to the market that are not convertible into Euros. All CelticGold customers can be sure that the products offered on our website comply with the above outlined new rulings and therefore remain VAT free.
VAT on Silver still to come
After we took a deep breath and relaxed with the above reply from the authorities there will be changes on the VAT exemptions in future. We all learned how fast a small country such as Estonia is able to put laws into force. So the recommendation "consider investing in silver rather sooner than later" is still valid - although we have removed the last order deadline. Please keep in mind that these rulings will change at some point in the future. Of course we will update you as soon as the rulings will change.
Business as usual - Order deadline removed
We accept orders on silver (and gold) 24hours a day on 7 days per week and we removed the deadline dated to 20th December for silver orders is now removed. We will announce the logistical cut-off times for Germany and Estonia before Christmas so you can schedule your CK Logistics pick-up or keep goods stored.