Gold Eagles, Customs and Blackwhite

The Value Added Tax rules were once quite ridged, but time blasted holes in the taxation wall. The rules are now corrupted by multiple choices and arbitrary decision processes. What applies for the few does not apply for the many.

In the letter I received from the Norwegian Customs, concerning 50 dollars American Eagle coins, they are careful to point out that all commodities, including American Eagle coins, imported to Norway are liable to Value Added Tax § 3-29. According to the letter American Eagle coins are regarded as a general commodity.

The Wrong Commodity
BUT…. and there are always buts... Quite a few commodities are vat-free; books, newspapers, magazines, electric cars to mention a few. I quote from the letter:
   Coins and bills which are in circulation as legal tender are exempt from Value Added Tax when imported to Norway, §§ 7-1 and 3-6 letter d.
   Ok, to repeat myself, which is necessary when working with governmental Newspeak, Customs tries to convince me that 50 dollars gold American Eagle coins are not legal tender because the coins are not in circulation. In other words: Since the coins are not in circulation they are not legal tender, and therefore the gold in the coin is liable to 25 % tax.

Dollars are not Dollars
In the eyes of Norwegian Customs it does not matter that The United States Mint, Department of the Treasury declares that the coin is legal tender. Norwegian Customs tells me that they do not care what The United States Mint tells their bullion buyers in the USA. Legal tender in the US is not necessary legal tender in Norway! If you bring Gold Eagle coins into Norway, you must pay VAT! If not Customs might confiscate the gold eagles.

Kroner are Kroner
So far so good? Again, not so. Now the time has come to apply the Orwellian word Blackwhite.
   This word has two mutually contradictory meanings. It means that you can claim that black is white in contradiction to the plain facts.
   So, what has BlackWhite with Customs’ statement? The 50 dollars American Eagle gold coin is not money. It is a commodity because it is not a circulation coin.
   Enter the Norwegian 1500 kroner gold coins ($ 180)! These coins were minted by The Central Bank of Norway. And, just like the American Eagle coin in the US, defined as legal tender like other Norwegian coins.
   However, the Norwegian 1500 kroner gold coin is not defined as a circulation coin by the central Bank. This 1500 kroner gold coin is NOT a commodity and therefore NOT liable to 25 % Value Added Tax if you by any chance should bring some of these coins into the kingdom.

Newspeak is Supression
As Newspeak goes, in Orwell’s book 1984, this way of explaining, or rather confusing the people, is designed and controlled by the state in order to suppress and limit free thought. In this case, a gold coin is not a coin, but a commodity. However, a gold coin is not a commodity, but a gold coin. Black is White. White is black.
   Orwell’s language is a study in where linguistics and psychology meet. An analysis of Newspeak reveals the ways in which Orwell’s fictional language can subtly take control of characters’ actions, their moods, and even their minds.

In my third blogpost on Gold Eagles. If you find this posting interesting you might also find the previous posting worth reading : Gold Eagles, Customs and Newspeak