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  1. NT931 Oct 24, 2014

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    Hi all,
    I'm traveling to NYC next year, and will be staying there for a few days and meeting some friends.

    So I was wondering - if I bought a watch from another person in the US, who sent the watch to me or a friend in NYC, would I have to pay tax? Does it matter if the seller is a private seller or a watch dealer who runs a business? And how much is the tax (if there's one)?

    I've been googling this but I'm getting quite confused. I'm asking as there are sellers who won't ship to Singapore , so I thought I'd find out if this method incurs extra tax. Thanks in advance for your help!
     
  2. MSNWatch Vintage Omega Aficionado Staff Member Oct 24, 2014

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    No tax issues for the situation described.
     
  3. bill5959 Oct 24, 2014

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    What about a dealer in NY state? It seems if he buys from one and ships within the state, ie to NYC, the dealer would be obligated to collect sales tax. Shipments from outside NY state would be no problem. Regards, Bill
     
  4. NT931 Oct 24, 2014

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    Thanks guys! It's most likely the dealer / seller will be outside of New York so I should be fine and tax-free :)

    And speaking about sellers in NYC, hey, it might be a time to contact Kringkily and finally get to meet him in person to buy a watch off him!
     
  5. cicindela Steve @ ΩF Staff Member Oct 24, 2014

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    Yes, but only the tax at the location of the shop or business if within state. He should not have to pay New York City tax , which is separate and payable for city purchases. That said, New York is money hungry place, I would not be sure that the state does not have reciprocal agreements within the state. Someone living in the City could best tell us if that is a problem.

    Remember the US does not have a national VAT.
    Most states have a sales tax.
    Some states have no sales tax
    Some cities have sales tax
    Some counties have sales tax

    Some companies agree to charge the tax for sales to customers living in that state and forward it to the state in question.
    Some companies refuse to charge the tax for sales of customers living in that state and do not forward the to the state in question.

    Some companies will charge the tax for sales in another state if they have an office or presence in that state.
    Some companies have individual agreements only with certain other states.
    Some companies will pay the tax for the purchaser.

    So you see the tax system is very simple in the US. :)
     
  6. gatorcpa ΩF InvestiGator Staff Member Oct 24, 2014

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    To simplify, if the seller is in New York State and the watch is delivered in New York State, then sales tax is due even if you walk onto a plane immediately to go home. If you visit a shop in NY and the watch is shipped directly to your home outside the state, then no sales tax would be due.

    An exception to the above would be if you lived in the USA, but outside of NY, and the store had a physical location in your home state where the watch is to be shipped. In that case, the merchant is generally required to collect your home state sales tax, regardless of the location where the transaction is to be made. This is what Amazon now does, after years of never collecting sales tax.

    New York City has an add-on tax for purchases delivered within the city limits. Many US counties and cities do.

    Of course, if you live outside the USA and opt to have it shipped directly, you may have customs issue in your home country.

    Eh, it's a living!
    gatorcpa
     
  7. Spacefruit Prolific Speedmaster Hoarder Oct 24, 2014

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    Also:

    If you live in (say) Chicago, and buy a watch, (say) in New York.
    You are obliged to declare that on your tax return in Chicago and pay the sale tax you would have paid.
    Not many people do it, until they get clobbered when the Tax inspectors go through the insurance schedule and point to a watch bought and ask, where was it bought, did you pay state taxes?

    So I am told
     
  8. roach7 Oct 24, 2014

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    The tax-man is scary...
     
  9. gatorcpa ΩF InvestiGator Staff Member Oct 24, 2014

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    That is true. Many states (including Illinois, starting this year) are requiring a standardized extra payment with their state individual income tax returns to cover this "use" tax.

    You can choose not to pay it, but you'd better be prepared to prove that you never made a purchase from out of state or over the internet.

    gatorcpa
     
  10. Kringkily Omega Collector / Hunter Oct 24, 2014

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    Let me know and I am always helpful ;)
     
  11. citizenrich Metal Mixer! Oct 25, 2014

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    Im a little bit confused by your question. Is this a private party transaction? If the seller has a NYS certificate of authority to collect sales tax on behalf of NYS and the local city, town or county, then they must charge you and collect on behalf of the taxing authority. If you live out of state (I believe you wrote you live in Singapore), then you have tge option of having the taxable item shipped to your domicile and the seller has no obligation to collect sales tax. If the physical transaction happens in NYC, then you must pay sales tax. The same way you pay sales or service tax on a happy meal or your hotel room.

    Digression: I'm very wary of internet sellers who advertise "tax free" shopping on the internet. There is no such thing. Our (U.S.A.) system relies on self compliance and if you make an out of state purchase , you're legally required to report that purchase to your home state and remit all taxes due. Politicians are generally afraid to fcuk with the internet because it makes them look un- hip or not cool but one day soon there's going to be lots if unhappy "internet shoppers".


     
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