Import duty (GST) on gold and silver

[seedyrom]

 
I'd ordered some gold and silver coins directly from the US Mint recently. The thing I hate about doing that, is the coins are obviously well above melt value, and then subject to GST when it comes through customs.
As per the usual process, I just got a call from someone at UPS. They will call me, ask me to pay the GST, then the coins are delivered to me. Today was different. They guy was asking all about the coins. Are they gold or silver? What purity are they? Am I buying them as an investment?
This was all strange, and I was down playing it, because I didn't know what the angle was.
"Umm, I think the gold coin is 90%" I said, "but the silver coins are 99.99%".
"Well I will be able to apply for GST exemption on the Silver coins" he replied.
I quickly told him that the Gold coin was actually 99.99%, so he was applied for GST exemption on that too.
 
He went on to say that .9999 silver and gold, bought as investments, are able to seek GST exemption.
Later I got a call from another person from UPS, who advised of the GST payable on the remainder of the order, which I paid.
 
I didn't know this was an option, and I don't actually know how to trigger the GST exemption process, but I sure was glad someone at UPS did. This was the first time it has happened, so I have potentially paid a lot of GST unnecessarily in the past, but I'm happy with the outcome on this transaction.
Thanks random UPS man!!
 

[kchan1111]

Oh woow nice!

[Mister T]

Hm I'd never given it any thought but I'm sure I've read about that exemption before.

[drakesterling]

All pure gold and silver coins are generally GST free.

However, if they are trading at a significant premium to the melt price, then they are not GST free. I'm not sure what constitutes as "significant", but I've always assumed anything trading at more than 10% over would fall into that - except when it doesn't, such as with 1oz kookas, where they are sometimes sold GST free, too, even at 15 - 20% over melt. It appears to be a grey area, and at least one bullion dealer appears to have been caught out by this.

Eric

[Bigfellani5]

This is the rules. Gold and silver bullion are gst free. To qualify the must be 996 or better in purity, made as a bullion product, internationally recognised as a bullion product and be sold based on a spot price of metal plus manufacturing and on cost plus a fair margin for profit. As soon as some sort of intrinsic value is added then it is subject to gst.

Where the goods are imported to Australia Aussie customs are supposed to add import duty to the item at the boarder where the goods exceed $1000 in value (except exempt items) except when gst is already added. Offshore sellers who sell more than $75k of goods (except exempt goods) to Australia must register for gst under the limited registration entities gst rules and collect and pay gst to the ATO (good luck in forcing this one). Significant global entities must also do this but have some special rules (like eBay, Amazon, Netflix etc)

So no matter where it comes from bullion should be exempt. So if you buy direct from an overseas seller and they are not registered for Aussie gst and it is under $1k you should not be pinged for gst. If you buy from a seller off amazon or eBay then no matter what the price, if you buy from an overseas seller eBay and amazon must collect gst.

Clear as mud!

[Basil]

So no matter where it comes from bullion should be exempt. So if you buy direct from an overseas seller and they are not registered for Aussie gst and it is under $1k you should not be pinged for gst. If you buy from a seller off amazon or eBay then no matter what the price, if you buy from an overseas seller eBay and amazon must collect gst.

Clear as mud!

Yeah,USA/UK Ebay GST is a killer now,add in low A$ and Post/Shipping and Coins/Bullion from O/seas are a no go 90% of the time, Coins/Bullion on Oz Ebay should be booming but its not.

Thanks for posting Info.