Sales Tax on Bullion: U.S. State Rates and Why agoldmind.com Collects It
At Agoldmind, we’re firm believers that precious metals are the oldest and longest continually trusted form of money there is.
And if you were “buying” money — such as making a foreign exchange transaction between U.S. Dollars and Euros — you would not expect to pay sales tax on your purchase.
However, not all U.S. states see it this way. Many states require us to charge sales tax on bullion and other forms of precious metals delivered to those states. Orders into vault storage are not subject to state sales taxes. See below for details.
Background on Sales Tax Changes
Prior to 2019, few online bullion dealers charged sales tax, except when shipping to states where they were headquartered or had other operations. However, a 2018 U.S. Supreme Court decision, Wayfair v. South Dakota, paved the way for states to charge sales tax on ALL goods sold online and shipped to customers in that state.
While it’s little surprise to see Amazon, eBay, Walmart and others now collecting sales tax online, it may surprise some to see the same at GoldSilver.com.
However, in states where bullion sales are subject to sales tax and the state has decided to collect sales tax on shipped-in goods, we must now charge that tax to customers at the time of any delivery order to those states.
Who Is Affected?
Delivery Orders to U.S. States
GoldSilver.com currently collects sales tax on delivery orders shipped to the following states:
District Of Columbia
International Delivery Orders
We do not charge sales tax or VAT on international delivery orders. However, this does not mean your order may not be subject to taxes or customs fees. All such charges on international shipments are the customer’s responsibility. See International Orders for more information.
Vault Storage Orders (Both Domestic and International Customers)
There is no sales tax on bullion purchased for private vault storage accounts, regardless of your primary residence or destination vault.
Similarly, if you sell your bullion from private vault storage, no sales tax will be collected.
However, if you take physical delivery of your bullion out of vault storage, sales tax may be required at the time of that delivery (based on then current value of the delivered bullion), at the same rates as the table above.
When Is Sales Tax Collected?
You’ll see sales tax as a separate line item during checkout once you select your shipping destination.
You’ll see exactly how much sales tax is being collected prior to completing your order. Sales taxes will also show up on your order confirmations, which can be used when taking a sales tax deduction from local or federal income taxes.
These new taxes apply only to bullion shipped to home addresses in the states listed below, although the list of states may change to keep up with changes in state tax laws. Bullion purchased for private vault storage will not be charged sales tax.
Questions? Email us or give us a call at +257757212530
Please keep in mind, everyone’s tax situation is unique and we cannot and do not offer individual tax advice.
State by State Sales Tax Policy
Note that actual sales tax rates are calculated at the time your order is placed. This table is for reference only and is subject to change as states adjust their rules. It covers the general rules that apply to each state and our product offerings; however, the table may not reflect additional local taxes based on your specific address within your state (as of 2014, there were 9,998 different sales tax jurisdictions in the United States, each with its own rules).
Began Collecting Sales Tax
|Categories of Taxed Items and Other Rules|
|Arkansas||October 1, 2019||All goods|
|California||October 4, 2019||Gold and/or silver coins, rounds and bars under $1,500 total per transaction.|
All jewelry and other goods.
|Colorado||October 1, 2019||All goods|
|Connecticut||October 1, 2019||All goods|
|District Of Columbia||October 1, 2019||All goods|
|Florida||March 20, 2020||All goods|
|Hawaii||October 1, 2019||All goods|
|Kentucky||October 4, 2019||All goods|
|Maine||November 6, 2019||All goods|