Will a VAT tax affect your PM buys & sells?

ebaytrader

Most EU countries impose a Value Added Tax on silver ranging from about 8% in Switzerland up to about 20% in the more heavily socialist countries. Gold coins, known bars and rounds are exempt to the best of my knowledge.

Are you willing to play in physical metals with an extra tax implication? What's your threshold of pain?

Some are long-term investors. Some are hoarders. Some are flippers. Will your strategy change?

gsa1fan

When & how do they add this tax? Yearly or time of purchase/sale?

Looks like a boat load of new taxes coming from heath care bill.

Texthttp://www.cnsnews.com/news/article/63298

OPA

<< <i>When & how do they add this tax? Yearly or time of purchase/sale?

Looks like a boat load of new taxes coming from heath care bill.

Texthttp://www.cnsnews.com/news/article/63298 >>



I believe on eBay, the VAT is already included in the opening bid. You as the buyer do not need to be concerned. ( unless there is a duty on the item you are buying) However, as a seller, and mailing it to Europe, that may be a different story. ( That's one of the reasons why I don't ship overseas.)

ebaytrader

A VAT tax is added in by each seller for the increase value along the path of a product to market.

timcoin

I'd be all for a national VAT, as long as it would completely eliminated the Federal Income Tax. It just makes better sense to tax consumption as opposed to punishing those that decide to work more to make more money and/or decide to save for the future.

mhammerman

VAT will pay for health care and other things. VAT has been brewing (yeah, it's a pun) since about January of '09, after the new electees took their offices; at least, that's when it started becoming conspicuous in the media here. It is basically a pre-tax where you pay as you go from the manufacturer to the end user. If you buy anything, you will likely pay a VAT and then in the case of metal, you pay when you buy and then when you sell, you will pay any gains you had so you get to have twice the fun. But, in the case of physical metals, if it's cash in and cash out, maybe things will be a little easier. The neat thing about the VAT is that every time an item gets sold or resold, it gets taxed...cool.

Peculiar that they call it a value added tax as I don't see where we get any value from it. The only good thing about it is that everyone has to pay it so there are really no expemptions and there are no tax refunds. The bad thing is that common items may become luxury items, depending on your level of where with all and of course, all the benefits of having an increased public welfare load. I predict that a VAT will have a stunning effect on our hobbled economy unless they wait till the economy starts growing again like maybe 2014 or so?

OPA

<< <i>I'd be all for a national VAT, as long as it would completely eliminated the Federal Income Tax. It just makes better sense to tax consumption as opposed to punishing those that decide to work more to make more money and/or decide to save for the future. >>



Not enough income generated by the VAT to offset the Income Tax Revenue. No EU country relies solely on the VAT, most, I believe, have some form of income tax in addition.

fastrudy

The only good thing about it is that everyone has to pay it so there are really no expemptions and there are no tax refunds

This is politics. There are ALWAYS exemptions and there will be some refunds. I bought a $1000 item in Germany and had to pay 17% VAT on it, but they gave me some paperwork and the 17% VAT was refunded to me at the airport before leaving.

When buying and selling is controlled by legislation, the first things bought and sold are legislators. - P. J. O'Rourke

DrBuster

<< <i>

<< <i>I'd be all for a national VAT, as long as it would completely eliminated the Federal Income Tax. It just makes better sense to tax consumption as opposed to punishing those that decide to work more to make more money and/or decide to save for the future. >>



Not enough income generated by the VAT to offset the Income Tax Revenue. No EU country relies solely on the VAT, most, I believe, have some form of income tax in addition. >>



That's because it's a completely extra sales tax over there. If it replaced the income tax at the proper level it would more than fund government. See the Fairtax. A 22~% national sales tax would make more money than the income tax.

To the OP, I'm not sure how it would affect my PM purchases, depends on how big we're talking, and how the private sale regulations are.

Tomohawk

<< <i>The only good thing about it is that everyone has to pay it so there are really no expemptions and there are no tax refunds

This is politics. There are ALWAYS exemptions and there will be some refunds. I bought a $1000 item in Germany and had to pay 17% VAT on it, but they gave me some paperwork and the 17% VAT was refunded to me at the airport before leaving.

When buying and selling is controlled by legislation, the first things bought and sold are legislators. - P. J. O'Rourke >>



But this doesn't work if it is an American VAT on any goods bought by Americans. The only method to get out of a "local" VAT is to resell the product and pass the tax to the next buyer. The ultimate consumer must pay the tax. With our current tax burden and given that Americans save less than 10% of their income, figure 90% of income is spent...that means a net increase of about 15% gross tax on the average person. I realize not everything bought or paid for is consumable (like rent or mortgage), but given the current insane climate all politicians seem to move in...nothing will be spared from a VAT (IMO, I guess...).

A VAT will be the quickest way to return to 1970's taxation levels...no slow build up there. And this is "popular?" With whom, I wonder?

timcoin

A national sale tax, or fair tax, would make it much more difficult to cheat the tax system. I guess it would be possible for companies to not pay the sales tax they collect, but compared to what goes on today, the fair tax would certainly cut the number of cheats; and druggies, etc. would begin paying taxes. Plus, the money saved by having to pay less IRS agents would be substantial. Companies could also save by having to spend less time on trying to figure out if they are following all the various rules correctly and by having to spend less money on accountants. It really would be a win, win, win, win. Just think about never having to file another tax return in your life. Wouldn't that be nirvana?

KUCH

Do u really think adding a VAT would make income or some other tax go away?

gdavis70

Hey Timcoin, I agree that it's a great idea but to replace the current system. All the chatter I hear is that it would be instituted alongside what we have. I'm struggling to find the "fair" about that.

DrBuster

VAT and Fair taxes are 2 different entities. Fair Tax proposition replaces all the payroll/income taxes in lieu of the national consumption sales tax. VAT just adds to your total w/o adding to the quotable "income" taxes.

I'd be surprised if VAT doesn't pass this year rushed through before the November elections.

cladking

<< <i>I'd be all for a national VAT, as long as it would completely eliminated the Federal Income Tax. It just makes better sense to tax consumption as opposed to punishing those that decide to work more to make more money and/or decide to save for the future. >>



The accumulation of capital is almost a crime in this country. Consumption and waste are
encouraged while production and investment are heavily taxed.

1jester

People who think a VAT is some kind of panacea are misguided. In my opinion, not only would a VAT merely add to our overall tax burden, failing to eliminate any other form of taxation (tax creep), but people fail to realize that only for the consumer is it "easier". All sellers are forced by mandate to become tax collectors for the government, along with horrendous amounts of additional paperwork and tax liability. For all businesses and sellers it is an onerous burden.

RWB

FYI Just a little American history:

The last major attempt to have a national sales tax (similar to a VAT) was in 1932. The fiscal 1932 federal budget deficit approached sixty percent of total spending. The obvious solution was to raise taxes and Mellon’s successor, Ogden Mills, quickly signed on to the Republican party’s pet plan, a national sales tax. Congressional Democrats also endorsed it and William Randolph Hearst pushed it with all his publishing might. It looked like a done deal. But Congressional fat cats had not reckoned with the American public. Cards and letters of opposition inundated the Congress and Hoover’s White House – so many that Congress quietly shut down the idea and let it die.

Every subsequent attempt at a national sales tax over the next decade was blocked by FDR. Opposition to a national sales tax has remained strong throughout all Executive administrations since then.