According to a new BMF letter, with regard to reduced taxation, both silver coins and gold coins must be checked to see whether they are collectors’ items and whether the “250% limit” has been exceeded. (Simplification) rules for silver coins will be removed.
Pursuant to Section 12(2)(12) of the Turnover Tax Act (UStG), the import of, inter alia, the goods referred to in item 54 of Schedule 2 is subject to the reduced tax rate. Point 54 lit. c (cc) of Annex 2 lists collectors’ items of minting value, namely coins and medals made of precious metals, if the tax base for the turnover of these items of these items exceeds 250% of the metal value calculated on the basis of the fine calculated on the basis of the metal value excluding VAT. A reduced taxation of The Value Added Tax Act does not provide for reduced taxation of coins that are not collectors’ items.
The (simplification) regulations of the BMF letter of August 5, 2004, IV B 7 – S 7220 – 46/04, BStBl I p. 638 have, when applied in practice, led to the fact that the reduced tax rate was applied even though the legal requirements were not met. The (simplification) regulations mentioned therein are therefore no longer apply. In paragraph 174 number 2 of the BMF letter the paragraphs 1, 3 and 4, as well as Annex 1 to the BMF letter are to be deleted. As a consequence, as in the case of gold coins, also in the case of silver coins it has to be examined in each case whether the coin is a collector’s item and the “250% limit” is exceeded. As a consequential amendment, margin no. 175 of the BMF letter, sentence 4 is to be deleted.
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