IMPS03400 | Import entry procedures: imports of precious metals on behalf of non-resident owners

Where a member of the London Bullion Market Association (LBMA) acts as an agent for a non-resident owner in the importation of bullion or gold coins, and subsequently supplies it as an agent for that owner, the provisions of Section 47 of the VAT Act 1994 apply.

As a result the bullion is treated as being imported and supplied by the LBMA member. This means that the LBMA member may complete the import documentation in their own name, and pay (or defer) the import VAT. This may then be deducted as input tax subject to the normal rules. Subsequent sales of the bullion on the London Bullion Market by an LBMA member will be subject to the conditions of the VAT (Terminal Markets) Order 1973, or the trade agreement between Customs and the LBMA.

Any queries should be referred to Deductions and Financial Services Team.

Further information is available in Notice 700/57 section 1.