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Avoiding NY sales tax and UK VAT on purchase

  1. john_coburg Oct 20, 2020

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    Afternoon all,
    Excuse the dull tax-related question, but as part of planning a relatively sizeable acquisition, being based in the UK and seeing US prices being circa 5-10% lower than those in the UK, is it possible to avoid both UK VAT and NY sales tax via the following: fly to NY to inspect the watch in person, but stay (possibly just overnight) at a Jersey City hotel (or anywhere out of NY state); purchase/transact remotely (e.g. via C24) but asking them to ship to my NJ hotel (hence avoiding NY state tax), and then fly home with it on my wrist (hence avoiding UK VAT).
    Does this work? Or is there a fly in the ointment...?
     
  2. Guy0783 Oct 20, 2020

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    Best advice, and practice, is to pay the tax you're legally obligated to pay. Not the answer anyone wants to hear I don't think, but it's the truth.
     
  3. Archer Omega Qualified Watchmaker Oct 20, 2020

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    You probably want the forum called "How to commit tax fraud" rather than a watch forum for this kind of "advice"...
     
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  4. Enzo Oct 20, 2020

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    ^ yep...and you are supposed to declare any items at customs when back in the UK, so could be a little nerve wracking!
     
  5. Guy0783 Oct 20, 2020

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    I should say I understand you're looking for legal work arounds. I would just urge an abundance of caution verifying any suggestions and their legality to keep yourself out of hot water.
     
  6. Kmart Oct 20, 2020

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    Asking how to dodge taxes on a public forum... ::facepalm1::
     
  7. tpatta Happily spending my daughter’s inheritance Oct 20, 2020

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    I don't see the work around on NY taxes as an issue. "Smuggling" the watch back in to the UK could become a serious issue. Sure you want to go down that rabbit hole?
     
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  8. STANDY schizophrenic pizza orderer and watch collector Oct 20, 2020

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    Not that this thread will last long


    Don’t think buying in person being a UK resident you will have to pay NY sales tax. ( someone in the US might clarify )

    But lying on a deceleration card entering the UK is a offence last time I checked.

    https://www.inbrief.co.uk/business-finance/vat-evasion/

    What are the sanctions for VAT evasion?
    Intentional evasion of VAT is a criminal offence under section 72(1) of the Value Added Tax Act 1994. It is a serious offence carrying a possible prison sentence of 7 years. Charges can also be brought under the Fraud Act 2006.

    Separately, HMRC will conduct its own investigations and impose penalties under the civil evasion penalty regime. In relation to VAT and VAT credits, the prescribed penalty is 100% of the amount evaded and, in the case of refunds and repayments, it is the aggregate of the amount of input tax which was overstated and output tax which was understated.
     
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  9. Shabbaz Oct 20, 2020

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    Yes. It’s better to do it silently...
     
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  10. STANDY schizophrenic pizza orderer and watch collector Oct 20, 2020

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    Driving on the tax payer funded road to and from the airport Is the real crime.....
     
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  11. NT931 Oct 20, 2020

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    2C8F2703-C710-47F8-B990-D34E0C1B2519.jpeg
     
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  12. Scooterino36 Oct 20, 2020

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    As others have stated, US and UK tax code is the proverbial fly in the ointment.

    To the other members: is buying at a US airport a legal way to save here?
     
  13. janice&fred Oct 20, 2020

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    Saving money is a valid desire, but perhaps the OP should regard the taxes involved as part of the purchase price when considering whether a deal is worth doing.
     
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  14. kov Trüffelschwein. Oct 20, 2020

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    Better to ask this question on Facebook. :thumbsup:
     
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  15. tpatta Happily spending my daughter’s inheritance Oct 20, 2020

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    The prices at airport duty free may save a bit but the issue still remains........what to do when returning to the UK. You may skate right by customs, or not. Don't know about the UK but if you fail to declare when entering the US and are caught I guarantee that on subsequent trips you will have your luggage taken apart as they look for "stuff". Then again, you may walk right through when you return and no one is the wiser.
    Interesting choice you will have to make. Good luck.:D
     
  16. Spacefruit Prolific Speedmaster Hoarder Oct 20, 2020

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    If you have to ask, you shouldn't do it.
     
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  17. Dan S Oct 20, 2020

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    The first part may be legal, but the second definitely is not.
     
  18. cicindela Steve @ ΩF Staff Member Oct 20, 2020

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    I will ask our Mod that is a UK tax/customs official and get back you. Can you pm me with your name and address in the UK.
     
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  19. gemini4 Hoarder Of Speed et alia Oct 20, 2020

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    Have you considered the Lincoln Tunnel Inter-State Tax-Free Trade Zone?:D
    ny nj.jpg
     
  20. Foo2rama Keeps his worms in a ball instead of a can. Oct 20, 2020

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    Any in person purchase from a company would be required to pay the state/local sales tax. If the item is shipped out of state to another state where the store does not have a business presence then sales tax would not be applied. ( note some states do not allow this to be avoided on internet transactions). The reason for this is states cannot take action on purchases made in other states. They do though expect you to declare the out of state purchase on your taxes and pay a “use” tax on it equivalent to your state sales tax.
     
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