Silver coins from other EU countries will in future be taxed more heavily when imported.
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Frankfurt Precious metal dealers breathe easy. The change in the import tax for certain silver coins announced by the Federal Ministry of Finance (BMF) at the end of September will not come into force immediately. In a new letter, the BMF announced on Thursday that it would grant a transitional period until November 30, 2022.
As reported by the Handelsblatt, the announcement of the changed taxation surprised the industry because it was published without prior consultation. In addition, it should apply “for all open cases”. That would have led to high additional tax payments, which could have threatened the existence of some retailers.
The tax change affects the silver coins American Eagle, Krugerrand, Maple Leaf and Kangaroo, which are particularly popular with small investors. Thanks to a reduced sales tax, these were often cheaper than, for example, the Vienna Philharmonic coin for the same value. But this tax advantage is not at all compatible with EU law, the Ministry of Finance clarified after the tax offices and customs authorities had used this practice for many years.
The problem with the announcement of the BMF was the application to “all open cases”. Because tax assessments from companies can usually be changed four years retrospectively.
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In the worst case, dealers would have had to pay tax on the coins sold in the last four years – out of their own pockets. It was also unclear how coins that had already been introduced but had not yet been sold should be dealt with.
Economic risks for dealers are averted
With the now published non-objection regulation, the BMF made it clear that the tax authorities will not object if companies apply the reduced tax rate to all affected silver coins by November 30, 2022. In addition, there will be no objection if silver coins treated as “collectibles” are delivered up to and including December 31, 2022.
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The industry association Fachvereinigung Edelmetalle and some companies in the industry had contacted the BMF and explained the problem. They obviously understood. “We welcome the fact that the Federal Ministry of Finance and the finance ministries of the federal states were open to the factual arguments of the industry and that a quick and practicable solution was found for the precious metal traders,” says York Tetzlaff, Managing Director of the Precious Metals Association. “This means legal certainty for the past, and the economic risks that had arisen for some retailers as a result of the legal adjustment could be eliminated.”
More: Silver coin dealers face additional payments