VAT Regime in Trading Valid and Invalid Coins from Precious Metals
The Financial Administration informs VAT payers about the correct procedure in trading valid and invalid coins from precious metals. As previously agreed between the General Financial Directorate within the Coordination Committee and the Chamber of Tax Advisors (Article 474/16.03.23), supply of such coins (other than from gold, and other than for collecting purposes) constitutes supply of goods for VAT purposes and as such is subject to VAT. A special regime for used goods, where the tax base is only determined with reference to the difference between the selling price and the acquisition cost, cannot be applied to such supply.
The Financial Administration is currently analysing certain suggestions regarding trading in valid and invalid coins made of precious metals. Initial outcome of that analysis indicates that payers fail to apply the correct procedure in their trading. The Financial Administration therefore requires that VAT payers make sure that they comply with the VAT Act and the Financial Administration’s interpretation, and calls the VAT payers to file an additional tax return and an inspection report in the event of any failures.
If you are uncertain as to what steps to make in a particular situation, please feel free to contact us.
Michaela Kozminská
kozminska@edmutilitas.cz![\"michaela-kozminska-23\"](\"/data/editor/michaela-kozminska-23.jpg\")
