United Kingdom (UK) Trading & Collecting Worldwideinfo@myshca.co.uk

Taxation & VAT Center

Silverhammer Coin Auctions and this platform operate in and from the United Kingdom of Great Britain and Northern Ireland. While we endeavour to advise about relevant applicable laws and regulations, each user of this platform is responsible for their own compliance with UK laws and regulations, and likewise for compliance with the laws and regulations of any other jurisdiction from which and/or to which they may trade and operate.

Silverhammer Platform Seller Tax Responsibilities

If you sell on the Silverhammer Platform you are responsible for complying with all applicable laws and following all regulations that apply to this OMP (Online Marketplace).

 

These responsibilities include:

 

Paying VAT on Silverhammer Subscriptions and commissions,

Paying VAT on sales that take place on Silverhammer Platform,

Using correct Tax settings to collect the tax and remit to relevant authorities,

Paying income tax,

Providing factual information about your(seller) location and location of goods you are selling,

Providing information to your customers about any import charges and customs fees, if applicable.

 

VAT TAX 

Our Commitment

The OMP (Online Marketplace) operator (us) is committed to tackling online VAT fraud and error and we strive to provide relevant advice to our professional and individual customers based in the UK, including for UK and EU sellers and non-EU sellers.

 

This means that we work closely with HMRC, the UK Tax authorities, to promote tax compliance by users of the marketplace. HRMC places legal obligations on the Online Marketplace and has powers to enforce them. 

 

The purpose of this agreement is to make clear our commitment and yours to a cooperation that includes collaborative working arrangements, exchanges of data, and timelines of sharing information regarding non-compliance. 

 

We are committed to educating sellers and ensuring that there is relevant information available for them by providing guidance, and to directing sellers to HRMC’s guidance on the GOV.UK website.

 

Please visit this page for full agreement wording on Tackling Online VAT Fraud and Error.

 

We are committed to helping you to comply with the UK VAT rules.

Report tax fraud  https://www.gov.uk/report-tax-fraud

 

What is VAT?

 

VAT (Value Added Tax) is a tax added to most products and services sold by VAT registered businesses. For more information, please visit How VAT works.

 

If you are registered for VAT Scheme please check How it works here.

Who should register for VAT in the UK?

You should register for VAT if you make business related transactions above a threshold. For the UK it is £90.000 but it is different for each other country, including rates which differ between EU countries. Visit this page for more information or to register https://www.gov.uk/register-for-vat.

 

If you are not an established business in the UK but sell items located in the UK, and for the EU countries, when cross-border sales exceed  €10000 you may need to register for VAT in each country you sell to, or use the EU VAT One Stop Shop.

 

If you sell only via an OMP you may not need to collect VAT or register for VAT purposes in the EU, or register only in the country you run your business from.

 

UK VAT Rates

In the UK the standard VAT rate is 20%. Other VAT rates are:

Reduced rate – 5%

Zero rate – 0%

 

VAT rates are chargeable depending on your business goods and services. To find out more please visit https://www.gov.uk/vat-rates.

 

Investment Gold Coins for purpose of VAT exemption https://www.gov.uk/guidance/investment-gold-coins-and-vat-notice-70121a

 

UK Import VAT Rates

Import VAT is normally charged at the same rate as domestic sales but if works of art, collectors’ items and antiques are imported, then a reduced rate of 5% apply.

 

Visit this page for more information https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad.

 

We will collect VAT on all UK imports with transaction values of up to £135 and remit to the UK TAX authorities HRMC.

If the seller is an Overseas Seller and the goods are already in the UK we will collect VAT on the full item value.

 

UK Export VAT Rates

Supply of exported goods is Zero Rated (0%) as long as all requirements set by UK tax authorities are met. Visit the following page for more information Exports.

 

Visit this page for more information https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703

 

EU VAT Rates for Collector’s items(imports)

Reduced VAT rates currently apply to imported works of art, collector’s items and antiques in the European Union. For more information, please visit:

 

https://www.statista.com/statistics/1224396/vat-rates-for-imported-art-and-antiques-eu-and-uk/

https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/

 

VAT TAX Classes Available for UK Domestic Business Sellers on Silverhammer Platform collected by OMP or Individual Sellers at the point of sale.

VAT TAX CLASS NAME CLASS RATE SELLER LOCATION NOTES
UK Standard
VAT 20% ; EU variable
UK
UK Standard rate
UK Reduced
VAT 5% ; EU variable
UK
Reduced rate
UK Zero
VAT 0% ; EU variable
UK
Zero Rate
Collectables UK Standard
VAT 20% ; EU variable
UK
Collectables/Second hand items
Collectables UK Reduced
VAT 5% ; EU variable
UK
Collectables/Second hand items at Reduced rates
Collectables UK Zero
VAT 0% ; EU variable
UK
Collectables/Second hand items at Zero rates e.g. books
UK Margin Scheme*
n/a
UK
UK Business sellers who are VAT registered and meet criteria
VAT exempt
UK VAT exempt ; EU VAT exempt
UK
Items that are VAT Exempt e.g. invetment gold or Businesses who are not registered for VAT purposes

* If you use UK Margin Scheme Tax Class when listing your items then you are fully responsible to meet your tax obligations and other requirements set by HRMC. You will need to provide all prices inclusive of any tax due on the sale, and provide relevant invoices to the customer that meet the scheme requirements. 

 

VAT TAX Classes Available for Overseas Business Sellers on Silverhammer Platform collected by OMP or Individual Sellers at the point of sale.

We apply VAT depending on the shipment address, item location and its value. This is because various countries around the word apply different tax rules and rates. VAT, and other fees, can be charged at the point of sale or at the border – depending on their value, for example.

 

When we are required to do so, we will collect VAT on items sold to customers in the UK and EU and elsewhere. 

VAT TAX CLASS NAME CLASS RATE SELLER LOCATION NOTES
Standard
UK Imports- 20% EU imports- variable Worldwide - no tax
Outside UK
New items that aren't collectables, works of art or antiques
Reduced
UK Imports- 5% ; EU imports- variable ; Worldwide - no tax
Outside UK
New items that aren't collectables, works of art or antiques
Zero
UK Imports- 0% EU imports- 0% Worldwide - no tax
Outside UK
New items that aren't collectables, works of art or antiques
UK Stock Items Standard
UK VAT 20% ; EU imports- variable ; Worldwide - no tax
Outside UK
Sell items already in the UK, or new items that aren't collectables, works of art, antiques
UK Stock Items Reduced
UK VAT 5% ; EU imports- variable ; Worldwide - no tax
Outside UK
Sell items already in the UK, or new items that aren't collectables, works of art, antiques
UK Stock Items Zero
UK VAT 0% ; EU imports- variable ; Worldwide - no tax
Outside UK
Sell items already in the UK, or new items that aren't collectables, works of art, antiques or books
VAT Exempt
UK Imports Exempt ; EU Imports Exempt
Outside UK
Items that are VAT exempt e.g. investment gold

Sellers are required to provide factual addresses for their trading as to where the goods are stored, and comply with all other Silverhammer Auctions Terms & Conditions

When we are required to do so, we will collect VAT on items sold to customers in the UK and EU and elsewhere. 

 

Sellers need to provide net item prices and select the appropriate tax class(s) when publishing listings. We will add tax due and deduct it from the customer payment, and remit the tax value to the relevant authorities. 

 

If you select a tax for your listing and we are not obligated to collect VAT we will pass its value to sellers who are liable for the VAT due on their sales, based on the tax class they used when publishing the items. 

VAT in the UK- How it works https://www.gov.uk/how-vat-works/vat-schemes.

 

Sellers

Silverhammer Auctions, or its employees aren’t tax professionals. We can’t advise you about any tax you may need to collect and remit to relevant authorities. 

Each business is unique and their representatives need to seek professional advice regarding their tax requirements and obligations.

UK Domestic Sellers

A UK Domestic seller is an individual or registered business seller who sells items in the UK to anywhere.

Private/Individual Domestic Sellers

A Private Domestic Seller is an individual who resides in the UK and sells their own second hand items not for profit. They are not self-employed for the purpose of selling on the OPM and are not registered with Companies House or for tax purposes.

 

If you are a private/individual seller you do not need to do anything with regards to VAT when listing items for sale. Any VAT due will be collected automatically.

 

Because you are not a business, in general the VAT is not due on the second hand items or collectables you are selling, although we may need to collect VAT on your items depending on the destination of the buyer. In addition, import duties and fees may be due on the border and would need to be paid by the buyer. 

 

You are responsible for knowing when you should register as a business.

Visit this page to find out if you should register for tax purposes and if you could be considered as a business.

Business Domestic Sellers

A Business Domestic Seller is a business or company registered at Companies House and paying income tax and/or corporation tax. You can be considered a business seller if you buy items for resale or for your business or any business purpose. 

 

All business sellers must understand their tax responsibilities and seek professional advice to ensure they comply with tax laws and regulations, and Silverhammer Platform’s Terms and Conditions.

 

If you are required to collect VAT on your sales you need to provide prices without the VAT included in the price and select the appropriate tax class when publishing the listing. We will add the tax due to your price at checkout. If you fail to apply the tax class, or do not apply the correct tax class you still will be liable for any tax due on your sales. You are required to pay taxes you collect to relevant authority.

 

If you sell to EU countries we will collect the appropriate tax when required by law and remit to relevant authorities.

 

You may need to register for an Economic Operators Registration and Identification  ( EORI) number if you export goods from an establishment in England, Wales or Scotland to the European Union. If you are moving not-controlled goods for personal use the EORI registration is not required. For more information and to apply for EORI number visit https://www.gov.uk/eori.

Special Schemes

Silverhammer cannot apply any special schemes e.g. Flat Rate Scheme, or margin schemes, as we are required to collect the full amount of VAT at the correct rate for the given EU country.

Margin Scheme

If you are registered for VAT and meet the criteria to use the margin scheme, you need to select the appropriate tax class (Margin Scheme) when publishing listings.

 

You need to provide item prices to include the full income you wish to achieve, and then account for VAT as per your own requirement. Regardless of this, we may be obligated to collect tax for some destinations and remit it to the relevant authorities.

 

You must print and include a VAT invoice in the package, that meet requirements set by HRMC, for more information please visit VAT margin schemes: Overview – GOV.UK (www.gov.uk).

 

The OPM cannot apply margin schemes to your sales. If you use the Margin Scheme Tax Class you take full responsibility for meeting all obligations and for remitting VAT collected and due to the HRMC. This would not be shown to customers and you are required to include an invoice with your shipment that meets all requirements. 

Overseas Sellers

You are an overseas seller if you reside outside of the UK, and sell items to anywhere, Including the UK.

 

You are also an overseas seller “if you sell goods stored in the UK to UK customers and do not have a business establishment in the UK.” 

 

You are also an overseas seller if you are based outside of the UK and sell goods to customers in Great Britain (England, Scotland and Wales), and then import them, or you are based outside the UK and EU and sell goods to customers in Northern Ireland, and then import them into Northern Ireland.

 

There are different rules if your goods are in the EU and sold to customers in Northern Ireland.

 

Your location depends on various factors including where your registered office is located or where you are making business decisions.

 

To find out more information please visit Who Should Register for VAT and GOV.UK Guidance for businesses selling goods in the UK using online marketplace.

 

All overseas sellers need to provide their prices inclusive of any VAT due in their own location, and are solely responsible for collecting and paying VAT tax, and income tax to their relevant authorities.

Private Overseas Sellers

A Private Overseas Seller is an individual who resides outside of the UK and sells their own second hand items not for profit (ie not on a business basis). They are not self-employed for the purpose of selling on the OPM and are not registered with any government authority.

 

If you are a private/individual seller you do not need to do anything with regards to VAT when listing items for sale. Any VAT due will be collected automatically.

 

OMP (this Online Marketplace) may need to collect VAT on your items depending on your location and the shipping destination of the buyer. In addition, import duties and fees may be due at the border and would need to be paid by the buyer.

 

You may need to check with relevant authorities in your country of residence if you could be considered as a business and should register for VAT/Taxation purposes.

Business Overseas Sellers

All business sellers must understand their tax responsibilities and seek professional advice to ensure they comply with tax laws and regulations at their location, including UK, and Silverhammer Platform Terms and Conditions.

 

will add it in the checkout, deduct it from the payment, and remit it to the relevant authorities. 

 

You must inform your customers that additional charges may be payable at the border.

If you are an overseas seller and sell items that are already in the UK, then at the point of sale UK domestic tax rates will apply. 

 

Sellers must comply with all selling guidelines and requirements and provide accurate information about their business and the location of their goods. 

If you import goods into the UK you may need to register for UK VAT as soon as you sell them; there is no minimum threshold.

Checks applicable if a seller is a NON UK seller (overseas seller)

As an OPM we need to make sure that sellers fulfil their tax obligations and are registered for UK VAT if they are selling:

 

goods to customers in Northern Ireland and the goods are located in Northern Ireland at the point of sale,

to other businesses who provide a valid VAT number and the goods are in the UK at the point of sale.

If we believe the business should be paying UK VAT, we will check the following:

that they have a valid VAT Registration Number (VRN),

the location of the seller,

the location of the goods that will be sold by the seller,

if the seller, or those directing the seller, have been removed from your online marketplace before,

how quickly the seller is able to fulfil orders from UK customers,

how the seller fulfils orders from UK customers,

if there’s any information that the seller, HMRC or a third party gives you that might indicate dishonest conduct or failure to meet their VAT obligations.

VRN (VAT Registration Number) Verification 

Businesses must provide valid VRN within 60 days of trading date commencing on the marketplace if they actively advertise or offer items for sale. The seller’s account will be suspended if the business owner fails to provide valid VRN if required.

 

Any VRN that fails our verification process will be removed from the account and the account will be suspended until a valid number is provided and verified.

 

We will notify HRMC when your seller account has been suspended or removed from the marketplace due to relevant obligations not met. Should this cause any inconvenience you should contact the HMRC VAT helpline.

 

Businesses must display their VRN on the Store Page. You may be required to upload your VAT Registration Certificate on request. We will notify you via email/dashboard notification if we require you to upload the certificate.

 

The business name you used to register on Silverhammer Platform needs to be the same as the one used to register for UK VAT and shown on the certificate. You will have 30 days to upload your certificate. If you do not complete this your seller account may be suspended. 

Sellers can provide their VRN on registration or from their Store Settings page. Please Visit this page to learn more about Store Settings.

 

If sellers provide their VAT number they agree that all transactions made are business related and made by the business registered for the VAT number provided.

 

We will notify you when your VAT number has been validated. You will be able to use it for all your business related transactions. 

Seller Location

Sellers must provide accurate information about their business location on registration. We will make relevant checks using geolocation and other ways to confirm the location of goods and we are required to do so by law.

Sellers are required to register on the website in the region/country they ship items from. If sellers ship from multiple locations they need to register separately for each location and provide accurate information as to the item’s location.

Location of Goods

We will use information sellers include in their Store page and listings details to determine goods location, including tracking numbers provided to the customer. 

 

Sellers are required by our Terms and Conditions to clearly show shipment processing time and delivery in the Store Page and listing details page.  Please visit this page to learn how to display this information.

 

When updating shipping status, sellers also must share shipment tracking numbers when provided by the carrier.

 

If you import goods into the UK you must inform customers in your listing details that they may need to pay UK Import VAT, customs duties and other fees when the item enters the destination country.

 

Customs Duty

What is Import Duty?

Import duty is a tax due on goods purchased from abroad. Import VAT and other fees may be payable. This depends on the local laws.

 

Customs Duty is usually handled by the courier or postal service used to ship a package. Your customer, the buyer, will be contacted by the carrier company if they need to pay Import VAT or Customs Duty, including any handling fees. If the customers don’t pay in 3 weeks the package will be returned to the seller.

 

If you ship abroad a customs declaration may need to be completed. If you need help with customs and sending items abroad visit this helpful guide https://personal.help.royalmail.com/app/answers/detail/a_id/106

Imports into UK

To streamline the process, laws have been introduced for low value shipments under £135. 

 

OMP (Marketplace Operator) is responsible for collecting VAT from Customers.

 

If the shipment is more than £135 in value the customer will have to pay VAT and Customs Duty (if applicable) to the carrier company including the value of postage, packaging and insurance, or directly to relevant authorities if you import the item yourself.

 

For more information, please visit GOV.UK information page https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

Imports into EU

If an item is shipped to the EU from a non-EU country then Import VAT is due on full value of the goods and a customs declaration must be made. In addition, custom duties may be due on shipments of goods above €150.

 

Import VAT is collected by the OMP (us) for shipments under €150 in value and we will remit this tax to the relevant authorities via IOSS (One Stop Shop). Otherwise, all Import VAT and Customs duties are collected at the border and paid by the customer.

 

Other imports

France including Corsica, and Monaco.

France, of which Corsica is part, is a member  of the EU. OMP will collect VAT on transactions for France both under and above the €150 threshold. Although Monaco is not part of the EU, it participates in certain EU policies, including customs and border controls, so the same requirements apply.

Norway 

Norway is part of the European Economic Area (EEA) in trade of goods. Items sold under the value of 300 NOK would fall under the VAT on E-commerce (VOEC) scheme. VAT will be collected at the point of sale. For transactions above 3000 NOK the tax and custom duties and fees will be due by customers at the border.

https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/low-value/

Northern Ireland

Northern Island is a part of the UK, but separate VAT rules apply with the EU. Different rules may apply to you if you sell to and from Northern Ireland to or from the rest of Great Britain (England, Scotland and Wales) or the EU. 

For more information, please visit  https://www.gov.uk/guidance/trading-and-moving-goods-in-and-out-of-northern-ireland

 

Isle of Man, Jersey, Guernsey

These territories are self-governing crown dependencies independent of the UK government

The Isle of Man

The Isle of Man is not a part of the UK, nor the EU. There are no customs for domestic UK sales, and the same UK VAT rules apply. If you are selling from the EU then this is export and customs charges are the customer responsibility in some cases. The seller can apply 0% VAT rate for cross border transactions.

Jersey

Jersey is not a part of the UK, nor the EU. It is part of the Customs Union with the UK, Guernsey and Isle of Man, so no customs charges will apply between regions in the union.

 

If you are selling from the EU then this is export and customs charges are the customer’s responsibility in some cases. Sellers can apply a 0% VAT rate for cross border transactions.

 

Jersey is outside of the UK VAT region and has a General Sales Tax of 5%. This will be collected by OMP. A customer will be liable for the GST if the total value of the shipment is more than £135.

Guernsey

Guernsey is not a part of the UK, nor the EU. It is part of the Customs Union with the UK, Jersey and Isle of Man, so no customs charges will apply between regions in the union.

 

Guernsey has no VAT on imports, therefore only customs duty and fees will apply to transactions from the EU. All exports attract 0% VAT. 

Income TAX

If you are selling goods as a business or for the purpose of making profit you should register with HRMC and pay income tax and/or corporation tax.

 

Sellers must comply with tax regulations with connection to their business activities on the Silverhammer Platform. You should get in touch with a professional to ensure that you comply with relevant regulations.

 

For more information, please visit https://www.gov.uk/government/publications/selling-online-and-paying-taxes/selling-online-and-paying-taxes-information-sheet

 

And to check if you should pay income tax please visit https://www.gov.uk/check-additional-income-tax

 

If you are selling as a private seller and registered as a business you may choose to migrate your Silverhammer platform account, or register as a business seller. For more information, please visit this page.

 

I am a customer. Do I need to pay VAT or Customs Duty on purchases made on Silverhammer Platform?

In general VAT is due on purchases in the UK and EU, and often elsewhere too.

 

There are many relevant considerations to consider whether you would need to pay the tax, and when. For example, it depends on seller type (private or business), their locations and the location of the items, and the item value. So, it may be included in the price you paid, or not. If the VAT is not paid at the point of sale and comes from abroad you may need to pay the tax and customs duties and fees at the border or to the courier/shipping provider.

 

We are obligated to collect VAT on orders up to £135 for the UK or €150 for the EU or the equivalent for various other destinations in part or in full. For example, we need to collect VAT on items sold to France regardless of their value. This will be shown to you at checkout and a tax invoice will be available to view and download in your my-account/orders page.

 

If you purchase items from multiple sellers at once then the VAT is calculated per seller. You may see different VAT rates on the checkout page.

 

You may need to pay import VAT at the time of purchase and/or other duties/fees when the parcel reaches the border customs of the destination country where you are. It depends on your location, the seller’s location and the item location(s), and other factors. If you are not sure please contact the seller directly before any purchase. Visit this useful information to help you understand how it works https://personal.help.royalmail.com/app/answers/detail/a_id/143

 

For more information regarding goods sent from abroad to UK, please visit  https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

 

For domestic sales, if you are located in the UK and buy from a UK seller then the full amount of VAT is collected by the seller, who will pay it to the HRMC. This will be clearly shown to you at the time of purchase. In some cases, you may get an invoice from the seller included in your package.

 

If you are a business buyer, and provide a valid VAT number, then no VAT will be added to your purchase price and their responsibility to account for tax is transferred to you.

 

If you win an auction and pay for it, a buyer commission will be due. This commission is taxable at UK standard rate of 20% and will be included in the total commission charge.

Seller VAT Agreement – our mutual obligations

  1. Silverhammer may account for any VAT on sales on the Silverhammer Platform under local, EU or other jurisdiction rules, and may be required by law to collect VAT in certain circumstances.
  2. Silverhammer provides you with relevant tax classes to enable you to collect VAT. You are obligated to know when to use the tax classes depending on legislation that applies to you. We will collect VAT on your behalf, deduct it from the transaction value and transfer it to your account.
  3. If any VAT is not charged on your sales, but should be, you remain responsible to account for any VAT due according to any legislation that applies to you. If you do not find the relevant tax classes for your business and goods you wish to sell, you must not offer these goods for sale and contact the OPM Operator.
  4. You are responsible for VAT on goods you sell, and all reporting obligations.
  5. Your VAT number and registration certificate you provide to Silverhammer Auctions belongs to the business you operate and that business if registered for VAT purposes. 
  6. You will provide a valid VAT number or numbers to the OMP and it  / they will be clearly displayed in your Store front page(s).
  7. You will provide accurate information related to the address of the business operation from where you ship items. If you ship from multiple locations (countries) you need to register separately for these locations.
  8. All information you provide with relation to VAT and business status must be true and up to date. If any circumstances change you immediately notify us and make relevant changes to information we hold about your business.
  9. All transactions associated with your business activity on Silverhammer Platform are relevant to the business with the VAT number(s) you submit to us.
  10. We reserve the right to request additional information to verify your account information with you or the relevant authorities, when permitted by law. 
  11. If you provide us with invalid information, wrong business details or act in contravention of our Terms and Conditions, or when deemed by tax authorities as not having valid business details, you are responsible for any unbilled VAT and you give us permission to charge your account, or bank account for any unpaid VAT if we hold joint responsibility.
  12. We reserve the right to recover any unpaid tax on transactions made on the Silverhammer Platform, including any penalties and fees that are incurred. 
  13. Any invoices relevant to transactions on the Silverhammer Platform will be generated by our systems and can be downloaded from your account order details.
  14. If you are selling items on the Silverhammer Platform you need to purchase relevant subscriptions depending if you are a business or private/individual seller. 
  15. As a seller you are responsible to know your all tax obligations.

Quick Questions Answered

Table of Contents

Yes. In most cases you must register for VAT in the UK if you are an overseas seller and sell items on the Silverhammer Platform to UK customers, regardless of the value of the sales. You also need to register if you sell goods that are already stored in the UK. If you are an overseas seller and you sell via the Silverhammer Platform to an overseas purchaser, you and the purchaser will also be responsible for payment of taxes and duties in your respective jurisdictions.

As a private seller selling second hand collectables, you do not pay tax on your sales. In some circumstances your customer may need to pay tax due to taxation rules in different countries. We will add this tax automatically if due, so you don’t need to do anything else. If you sell a considerable quantity of items you may be considered to be acting as a business. You may need to register with HMRC and pay income tax.

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