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Where Taxpayers and Advisers Meet

Selling of foreign currency - VAT exempt?

mazdaq100
Posts:18
Joined:Wed Aug 06, 2008 3:54 pm
Selling of foreign currency - VAT exempt?

Postby mazdaq100 » Mon Mar 15, 2021 12:26 pm

Hi

If a business sells physical foreign currency (legal tender banknotes, currently in circulation rather than old, collectable notes), are they VAT exempt?

Thanks.

pawncob
Posts:4704
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Selling of foreign currency - VAT exempt?

Postby pawncob » Mon Mar 15, 2021 8:32 pm

You can't "sell" foreign currency, it is exchanged. And it's exempt from VAT.
With a pinch of salt take what I say, but don't exceed your RDA

Tom7000
Posts:73
Joined:Wed Aug 06, 2008 3:30 pm

Re: Selling of foreign currency - VAT exempt?

Postby Tom7000 » Fri Jul 02, 2021 6:03 pm

You Sure ?


2.6 Dealing with numismatic and investment coins
If you sell bank notes or coins, whether or not they are legal tender, as:
•collectorsʼ pieces
•investment articles
•items of numismatic interest
your supply is normally taxable on the full selling price, whether or not they are sold for more than their face value. Examples include:
•bank notes
•proof coins
•Maundy money
•precious or base metal coins
However, if you make supplies of collectorsʼ items of numismatic interest, you may be able to use the special scheme explained in Notice 718 Margin Scheme for second-hand goods, works of art, antiques and collectorsʼ items. Sales in some gold coins are exempt as investment gold. Further information is provided in Notices 701/21 Gold and 701/21A Investment gold coins.

les35
Posts:611
Joined:Wed Aug 06, 2008 3:09 pm

Re: Selling of foreign currency - VAT exempt?

Postby les35 » Fri Jul 09, 2021 10:07 am

or...
2.7 Foreign exchange transactions
Foreign exchange transactions are normally exempt supplies. If you act as principal, then the consideration is the net result of your transactions over a given period of time plus any fees or commission charged. However circumstances may arise where you enter into a foreign exchange contract that does not provide for a consideration in any form. In this instance there may not be a supply for VAT purposes. For further information please see VAT Finance Manual (2740).

If you act as an intermediary in a foreign exchange transaction you should refer to section 9.
Extract from Notice 701/49. Exempt, but under a different part of the guidance. Do check precisely what you are intending to supply against the HMRC Notice.

pawncob
Posts:4704
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Selling of foreign currency - VAT exempt?

Postby pawncob » Fri Jul 09, 2021 10:22 am

OP stated:legal tender banknotes, currently in circulation rather than old, collectable notes, so he's not selling to a collectors' market, he's "exchanging".Perhaps he could clarify exactly what he's "selling".
With a pinch of salt take what I say, but don't exceed your RDA


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