VAT ON BUYING AND SELLING OF USED GOLD

VAT ON BUYING AND SELLING OF USED GOLD

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Hi,

I have taken over a new client who is a Jeweller. He sometimes buys used gold of public and sell to Bullion store who are responsible for output tax.

But if he sell it to public would he have to charge VAT on it or not?

Also one of the partner has ended his partnership and took his share by taking gold from stock what would be the double entry for this?

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By finegana
16th Jul 2014 14:09

Gold...

This one needs a kick-start, 350 views so far:

 

Our Jeweller client sends scrap gold off for Assay (google it) regularly; this is a self-biling process where the Assay office charges VAT as both are VAT Registered.  Same as OP?

Rarely does he sell the used pieces, if he does then he charges VAT on the sale.

Second hand margin scheme, from what I've seen, can apply to the sale.

Was the partnership properly valued and partner removed (or dissolved), and that valuation is represented by the market-value of the stock taken?

Happy to receive further comments that may assist the OP.

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