Gold imports and exports
Tertiary legislation about gold imports and exports (originally published in VAT Notice 701/21).
The following text has force of law under Schedule 9 Group 15 items 1-3/VAT (Investment Gold) Order 1999/VAT Regs 31A.
1. When to notify HMRC about investment gold
The first time that you make an exempt supply of investment gold which exceeds £5,000, or when the value of your supplies of exempt investment gold to any one customer is over £10,000 in any 12 month period, you must notify us within 28 days by writing to our Written Enquiries Section.
If you’re required to notify that you trade in investment gold and you’re not registered for VAT, you must also provide the following information:
- Name of company, partnership or sole proprietor
- Company incorporation number or details of partners
- Addresses
- Phone number
- Contact name
- Accountant’s name, address and phone number
- Associated VAT registration numbers
The Gold Team will send you an acknowledgement. If you do not receive this within 28 days, you must check that they have received your notification.
You do not need to notify us of subsequent supplies.
2. Opt to tax investment gold
2.1 Opting to tax if you produce or transform gold into investment gold
You must notify our Written Enquiries Section if you intend to opt to tax. If you do not receive an acknowledgement within 28 days, you must check that they have received the notification.
2.2 Opting to tax if you supply gold for industrial purposes
To get our agreement to you opting to tax your supplies of investment gold, you must write to our Written Enquiries Section giving your VAT registration number and confirming that you normally trade in gold for industrial purposes. If they agree they will send you a letter of approval within 28 days. They will normally impose conditions and the letter will also explain what these are and tell you when you can start opting.
2.3. Opting to tax if you act as an agent
You must inform our Written Enquiries Section that you intend to opt to tax your services. If you do not receive an acknowledgement within 28 days, you must check that they have received the notification.
2.4 How to produce invoices if you opt to tax
Once you have fulfilled the conditions in paragraphs 4.4, 4.5 and 4.6 of VAT Notice 701/21, include the following statement on your invoice:
‘We have opted to tax this transaction.’
3. Invoice requirements for trading in exempt investment gold
3.1. When you need to issue an invoice for sales of exempt investment gold
You must issue an invoice for:
- each sale involving exempt investment gold which exceeds £5,000
- smaller transactions if the total value of sales to that customer has exceeded £10,000 in the last 12 months.
You must also give each invoice a unique identifying number.
But please note that you do not need to produce the invoice or keep the records described in this section or section 7 or notify us that you trade in investment gold (section 3) if every supply of investment gold you make is for less than £5,000, unless the total value of supplies to an individual customer over the previous 12 months was above £10,000.
3.2 Invoicing when you buy from a person who does not trade in investment gold
You must issue an invoice on behalf of the seller if:
- the value of the purchase is more than £5,000 or
- you make more than one purchase from the same supplier and the total value of your purchases from that supplier has gone over £10,000 in the last 12 months
It must contain all of the relevant details specified in paragraph 6.4.
Also, the invoice must include the following declaration which must be signed by the seller:
‘I declare that to the best of my knowledge the details shown on this invoice are correct.’ (Signature and name).
3.3 Details to include on invoices for sales of exempt investment gold
Each invoice must contain the following details if appropriate:
- name and address of seller, your name and address (if different to the seller), name and address of the purchaser, delivery address (if different), unique customer reference (see paragraph 7.1(b))
- date of invoice; delivery date; type of supply (for example, sale)
- your VAT registration number if you, or your principal are registered for VAT, or the seller’s VAT registration number (if you’re not the seller), and
- a description of the gold supplied
- for bars and wafers: form, weight and purity, any other identifying feature (including any proprietary mark, hallmark and serial number where applicable), or
- for investment gold coins: the coin type, country of origin and whether or not the coin is included on the list of gold coins reproduced in Notice 701/21A Investment gold coins
- the number of items, and
- the total amount payable
4. Records to be kept
4.1 Records to be kept for gold delivered or taken away by your customer
If you sell exempt investment gold which is delivered or available to be taken away by your customer, you must keep the following information as part of your business records. These requirements do not apply if you make supplies described within paragraphs 7.2, 7.3(a), 7.6 and 8.2 of VAT Notice 701/21.
This applies whether or not you’re registered for VAT.
(a) Accounting record
You must keep and maintain a record showing the following details:
- invoice number
- invoice date
- customer reference number
- customer’s VAT registration number (if applicable)
- description of the gold (form, quantity and purity)
- name and address of the agent (if applicable)
- name and address of the purchaser
- transaction value
(b) Customer record
You must keep and maintain a record identifying customers who purchase exempt investment gold. This record must have a unique reference number and contain the following information:
- name
- date of birth
- current address
- phone number (if available)
You must take reasonable steps to make sure that your customer has given you correct information. In order to do this, you must ask for and examine at least one document from each of the following lists:
List 1:
- Passport
- Full driving licence
- National Insurance card
- Birth certificate
- National identity card
List 2:
- Phone bill
- Other utility bill
- Deeds
- Tenancy lease
- Council tax bill
- Hotel key card (for non-UK residents only)
You may agree alternative satisfactory evidence with our Written Enquiries Section.
If possible, you should keep a copy of the documents you see. You should write on each copy ‘certified as original document’. You must sign and date this declaration.
If it’s not possible to keep a copy of the document you see, you must record, as part of your customer record, sufficient details to let us to obtain a copy if we ask. As a minimum you should record the:
- name of the document
- reference number
- name and address of the issuing authority
You must insist that your customer produces the original document. You must keep the record up to date.
(c) Method of keeping the required particulars.
Where you’re required to keep and maintain the records specified in parts a) and b) of this paragraph you may, as an alternative, keep and maintain the details required in a manner which is convenient for your business provided both:
- all the details specified are accessible for inspection by a VAT officer
- you’ve agreed the format with our Written Enquiries Section
4.2. Internet and mail order sales
If you sell investment gold over the internet or by mail order and you fulfil the conditions at (a) or (b) below, you may, instead of keeping the customer record set out at paragraph 7.1(b), keep and maintain the following record:
(a) if your supply is paid for by credit card and the delivery address is also the card holder’s address, you must record the name of your customer, the credit card issuer and the card number; or
(b) if your supply is paid for by cheque, you must record the name of your customer, the name of the bank and the account number of your customer.
You must also keep proof of despatch of the investment gold to your customer’s address.
4.3. Sales to VAT-registered businesses
If you sell investment gold to another VAT-registered business you may, instead of keeping the customer record described at paragraph 7.1(b), ask your customer for their VAT registration number. But you must check with our Written Enquiries Section that the VAT registration number provided is authentic.
4.4. How long to keep records for
If you purchase investment gold you must keep the purchase invoice you receive for at least 6 years from the date of the transaction.