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queriver
·For some reason, the idea of smuggling a watch through Customs makes me think of the watch story told by Christopher Walken in Pulp Fiction.
Avoiding NY sales tax and UK VAT on purchase
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gatorcpa
··ΩF InvestiGatorI suspect that Tax applied in the US is reclaimable on exit as you are not a US resident.
gatorcpa
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YY77
·Nope. The US has no federal sales tax, use tax, GST or VAT. The sales and use taxes mentioned here are state and local level only and are based solely on where delivery occurs. You cannot get a refund at the airport when you leave the country like the EU.
gatorcpa
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john_coburg
·Thank you all ; based on the above, it would seem legally avoiding state tax is a reasonable and not particularly unethical proposition (given i don't live there), but there are exist no legal (or indeed ethical) ways of avoiding UK VAT on the other leg...so i guess i'll just have to wait for a reasonably-priced example to come up here in the UK, or just pay up. Thank you all for your comments, they're heard loud and clear!
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tpatta
··Happily spending my daughter’s inheritanceThank you all ; based on the above, it would seem legally avoiding state tax is a reasonable and not particularly unethical proposition (given i don't live there), but there are exist no legal (or indeed ethical) ways of avoiding UK VAT on the other leg...so i guess i'll just have to wait for a reasonably-priced example to come up here in the UK, or just pay up. Thank you all for your comments, they're heard loud and clear!
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rcs914
·New York was one of the first states to impose on companies the collection of sales tax across state lines, so shipping it to NJ from NY isn't going to save anything - the tax will still be collected for the sale by the seller, assuming they are a business.
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pdxleaf
··"I cut it TWICE and it's still short!"OP, you could move to Oregon and become a US citizen. We have no sales tax and I can show you around. Unfortunately, there are some downsides to this also. If you get sick, you're kinda screwed without Her Majesty's health insurance for one. There's a few others but I think you get the idea.
Cheers,
Dave
Cheers,
Dave
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MCC
·Nope. The US has no federal sales tax, use tax, GST or VAT. The sales and use taxes mentioned here are state and local level only and are based solely on where delivery occurs. You cannot get a refund at the airport when you leave the country like the EU.
gatorcpa
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RonJ
·So what happens if you import a watch say from UK? do you simply pay local tax based on where it is delivered to?
The USA has an Import Duty for overseas purchases and it is typically paid to get the item into the country.
Some States also have a "Use Tax" which is what they call the Sales Tax when you have to declare it yourself and pay for it.
For small businesses, the State will come in and do a "Use Tax" audit. They basically go through all your purchases in your accounting system (these business-related purchases are income tax deductible so everybody does a good job of recording them) and find any purchases where a Sales Tax was not listed on the receipt. They add up all the missing "Use Tax" and add penalties and interest to it.
Most States do not do a good job of auditing individuals for missing Use Tax items. It would have to be a high-priced item to make worth their while, IMHO.
.
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Evitzee
·So what happens if you import a watch say from UK? do you simply pay local tax based on where it is delivered to?
That's the theory, the taxpayer remits the appropriate tax to the state/local authorities on his own initiative. It appears from reading the posts here on OF that US members do an outstanding job in doing this, it seems like close to 100% compliance. Well done, lads. But outside of our forum members the compliance rate is probably something like 0.000001% in the general public. It's great that we have such a stellar bunch of upstanding US taxpayers here on OF!
Edited:
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airansun
·California tracks high end US Customs entries delivered in-State.
Guess how I know.
Guess how I know.
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YY77
·That's the theory, the taxpayer remits the appropriate tax to the state/local authorities on his own initiative. It appears from reading the posts here on OF that OF US members do an outstanding job in doing this, it seems like close to 100% compliance. Well done, lads. But outside of our forum members the compliance rate is probably something like 0.000001% in the general public. It's great that we have such a stellar bunch of upstanding US taxpayers here on OF!
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kkt
·The USA has an Import Duty for overseas purchases and it is typically paid to get the item into the country.
Some States also have a "Use Tax" which is what they call the Sales Tax when you have to declare it yourself and pay for it.
For small businesses, the State will come in and do a "Use Tax" audit. They basically go through all your purchases in your accounting system (these business-related purchases are income tax deductible so everybody does a good job of recording them) and find any purchases where a Sales Tax was not listed on the receipt. They add up all the missing "Use Tax" and add penalties and interest to it.
Most States do not do a good job of auditing individuals for missing Use Tax items. It would have to be a high-priced item to make worth their while, IMHO.
.
Most or all states do a good job collecting use tax on cars and boats because they have to be registered. Other things, it has to be initiated by the buyer.
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Evitzee
·Most or all states do a good job collecting use tax on cars and boats because they have to be registered. Other things, it has to be initiated by the buyer.
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RonJ
·Except we had a former failed US presidential nominee who wiggled out of paying $500,000 in sales and excise taxes by harboring his $7 million dollar yacht outside of the state where he actually lived.
yes, this is similar to registering an expensive car in Montana but living in some other State. My State (Virginia) has started cracking down on this and I think they even pay a reward for turning in any neighbors or co-workers who do this.
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stevec14
·Good decision OP. Having my collar felt is one thing I try to keep at bay. If I have to pay Vat then so be it. It’s not worth it and the subsequent worry for what is in most cases a non life changing sum of money. I’m self employed and have plenty of chances to save per my accountant - my reply is always the same. Pay what I should pay.
the reality is, with it strapped to your wrist you’d be highly unlikely to get pulled - however, there’s always one. You don’t want it to be you.
the reality is, with it strapped to your wrist you’d be highly unlikely to get pulled - however, there’s always one. You don’t want it to be you.
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gatorcpa
··ΩF InvestiGatorSo what happens if you import a watch say from UK? do you simply pay local tax based on where it is delivered to?
California tracks high end US Customs entries delivered in-State.
For those states with individual income taxes, there is usually a line item on the state income tax return to declare use tax for those inclined to self-report.
In my state, there is no state income tax. However, I have had clients audited by the state for high value overseas purchases. My guess is that they were tipped off by US Customs or private courier (DHL, UPS, FedEx, etc.).
If you purchase through a business, you are more likely to be picked up for use tax, as you are supposed to file sales and use tax returns on a periodic basis. This is true even if what you sell is not otherwise subject to sales tax.
gatorcpa
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RonJ
·... the reality is, with it strapped to your wrist you’d be highly unlikely to get pulled - however, there’s always one. You don’t want it to be you.
Yes, and the Customs Officer is trained to tailor their questions that they ask you based on your social profile. For example, if you have long hair and beard and you're carrying a guitar case, they are going to ask you several drug related questions. If you're wearing stylish clothes and have a shiny new watch on your wrist, they are going to ask if you bought any jewelry or watches while out of the country.
And, they are trained to ignore your verbal answers but to study your body signals instead. Certain eye movements, or voice changes, or signs of raised blood pressure, they'll continue to ask you a series of questions. They do this all day long and get pretty good at catching people. And, if they think you are lying to them, you get sent to a back office where you get to spend a long time with a senior agent who is REALLY good at getting the truth out of you.
So, probably not worth it in the grand scheme of things.
.
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pIoNeErOfThEnILe
·vacation in a tax free state or island nation. buy said watch in person.
if you have any burisma execs email, it could help your quest
if you have any burisma execs email, it could help your quest