Importing Legal Tender Coins

[smerty]

When importing legal tender silver coins under the HS CODE, 7118.90.20, on the Thai Customs website, it says "FREE". So this means no duty. Anybody know if you have to pay VAT tax on them or not? If not, where can proof of this be obtained to show customs dept.? Hope to get an answer from Sunbelt Asia. Thank you.

Edited April 20, 2011 by smerty

[gregb]

I think this is about the 117th time this topic has come up. People keep wanting to try and play games with the rules. Put simply, you are crazy to try and make this argument unless you have previously bribed the customs official.

I have only spoken with the guys at the airport. Our resident expert Naam has more interactions with shipping agents and bringing in container loads of precious metals. So understand my perspective. From the guys at the airport, a legal tender mark on a coin is irrelevant. It can not be exchanged at any bank in Thailand for local currency, therefore it does not serve the purpose of currency when you bring it in. Hence, don't try and BS them. Their opinion is that people who try to make this argument are being disingenuous, and trying to cheat the system. Of course, they may allow you to get away with this argument if you are willing to exchange said coins for THB from them...at face value of course, since this is what you are claiming they are.

Yes, you have to pay VAT on all coins that are not primarily intended to be used as legal tender, as you would on any collectible. Only gold is exempt from this. You can try and get a legal opinion if you want. I wish you the best. I even encourage you to go see a lawyer about it for all the good it will do you. They know what these coins are. You aren't the first person to have tried with this argument and failed. The customs officials have wide discretion in how they interpret this rule, and they have made clear in no uncertain terms that you must pay VAT on all bullion coins except for gold which is specifically exempt. Argue with them at your own peril.

As Naam has pointed out previously though, if you try to import several train loads of gold bullion as he does to fund an afternoon of shopping with his wife, they will astonishingly claim it is clearly not for personal use and refuse it with the not surprising argument that you don't posses a import/trading license. As if anyone can buy a bottle of wine or a pack of cigarettes with less than 3 gold bricks. The guys at the airport have never seen someone try to push a wheel barrel full of gold through the green lane, so they don't worry about this trifling detail.

[smerty]

Thanks for that, but I am not trying to play games with the rules, just trying to find out what the rules are. On Thai customs website and under WTO rules, the HS CODE 7118.90.20 is for "silver coin, being legal tender" and it is listed as "FREE". So it doesnt get any clearer than that, and a one ounce silver Canadian maple leaf that is a legal tender coin with a face value of $5 certainly is covered by this description, regardless of the fact that it has a sivler value of around $44. So by law, as listed on Thai Customs website, this item would be "FREE". My question is, does this mean no VAT tax as well, or not. And if not, where can documentation of that fact be found. I have imported them and had to pay only VAT, but would not like to pay that if it is not required.

I think this is about the 117th time this topic has come up. People keep wanting to try and play games with the rules. Put simply, you are crazy to try and make this argument unless you have previously bribed the customs official.

I have only spoken with the guys at the airport. Our resident expert Naam has more interactions with shipping agents and bringing in container loads of precious metals. So understand my perspective. From the guys at the airport, a legal tender mark on a coin is irrelevant. It can not be exchanged at any bank in Thailand for local currency, therefore it does not serve the purpose of currency when you bring it in. Hence, don't try and BS them. Their opinion is that people who try to make this argument are being disingenuous, and trying to cheat the system. Of course, they may allow you to get away with this argument if you are willing to exchange said coins for THB from them...at face value of course, since this is what you are claiming they are.

Yes, you have to pay VAT on all coins that are not primarily intended to be used as legal tender, as you would on any collectible. Only gold is exempt from this. You can try and get a legal opinion if you want. I wish you the best. I even encourage you to go see a lawyer about it for all the good it will do you. They know what these coins are. You aren't the first person to have tried with this argument and failed. The customs officials have wide discretion in how they interpret this rule, and they have made clear in no uncertain terms that you must pay VAT on all bullion coins except for gold which is specifically exempt. Argue with them at your own peril.

As Naam has pointed out previously though, if you try to import several train loads of gold bullion as he does to fund an afternoon of shopping with his wife, they will astonishingly claim it is clearly not for personal use and refuse it with the not surprising argument that you don't posses a import/trading license. As if anyone can buy a bottle of wine or a pack of cigarettes with less than 3 gold bricks. The guys at the airport have never seen someone try to push a wheel barrel full of gold through the green lane, so they don't worry about this trifling detail.

[Sunbelt Asia]

According to this link that shows article 80 of the Thai Revenue Code, VAT must still be paid

http://www.rd.go.th/publish/5206.0.html#mata81

[sunbelt][/sunbelt]

[notforme]

I have just bought in 9 silver coins from austalia via FedEx, (they are similar to the one the poster mentions - dragon coins that have a face value of a dollar but are obviously worth more).

FexEx asked what they were so I said collectibles. They are doing customs forms so then they got back to me and said duty and tax would be 27% - 7& vat and 20 customs duty for collectibles. So I then said they are legal tender - they then said I would need a license to bring them in. This is FedEx saying this in order to complete customs proceedure, they have not actually gone through customs yet.

This is putting a big mark up on them - costing 12k baht. Does anyone know if this is correct? From the posts above, it seems to say that as it is not a lot of coins (i.e. not 'several train loads;), I may be able to class it as legal tender and just pay the VAT.

Thanks

[notforme]

Just to clariy on my last post - I meant 20% customs duty and 7% vat.