Shopping in the US (Tax) ?

[Shaun Stuart]

I am in New York at the end of November and would like to purchase a Pocket PC and Ipod as christmas presents. Will I be charged any import Tax on these gifts when I come through customs back in to the UK ?

Any idea how much ?

[manywhere]

The tip is to do the following: hear no taxes, see no taxes, speak no taxes, there is no taxes... ;)

Open the packages and discard of them in the US. Transport the devices in your plane on-board luggage and bring 'em to your sweet home. That's it. (It works for me :lol: )

[Kati Compton]

I thought generally the tax was based on the country you're returning to, not the country you bought at. Generally, if you submit a form and receipts and wait forever, you can get reimbursed for the tax you paid at the foreign country. But then at customs, you're supposed to pay the relevant tax to your own country.

[Darius Wey]

I thought generally the tax was based on the country you're returning to, not the country you bought at. Generally, if you submit a form and receipts and wait forever, you can get reimbursed for the tax you paid at the foreign country. But then at customs, you're supposed to pay the relevant tax to your own country.

Kati, you're 100% spot on. If the US has any GSTs or taxes on technology items (I'm not aware of any but that's because I'm 15,000 kilometres away and I can't recall if I came across any taxes the last time I was in the US :P), you should keep your receipts and at the airport, you can usually claim back those taxes since you are not a resident in the US. However, once you take that into account, the country you return to may have specific laws governing maximal values of goods that you bring into the country. This may be $2000 or $3000, but it really depends on the country. If you declare it, and it's less than the specified maximum values, you basically have to pay no taxes on it. If you exceed the value, you may have to pay taxes, although it depends. Often if you are open about it and declare your goods, you can get by without paying taxes even if you bring in $5000 worth of goods. However, these policies differ from country to country and it may help to contact the customs office in the US and UK to see what laws govern this sort of issue.

[Kati Compton]

I thought generally the tax was based on the country you're returning to, not the country you bought at. Generally, if you submit a form and receipts and wait forever, you can get reimbursed for the tax you paid at the foreign country. But then at customs, you're supposed to pay the relevant tax to your own country.

Kati, you're 100% spot on. If the US has any GSTs or taxes on technology items (I'm not aware of any but that's because I'm 15,000 kilometres away and I can't recall if I came across any taxes the last time I was in the US :P)
You did. It just varies not only from state to state, but county to county (subdivisions of states) and city to city. Basically, at each sub-national level of government: state, county, and city, there's SOME percent generally tacked on. You may have an area where a county or state doesn't have a sales tax, and there may even be a state or two that doesn't. But most places there are. For example, when I was in the Chicago suburbs, it was 8.5% (considered high, but still lower than places in NY and CA, and lower than in Chicago itself - which was the same state, same county, different city). Up in Wisconsin I'm paying 5.5%. But the flip side is that state income taxes are higher.

Here's a story that's almost interesting. Back in high school I worked retail at a software store at the mall (yes, geeky choice even then). The mall was part in one town and part in another. So different areas of the mall incurred a different sales tax. :silly: I think at the time, the store I worked at was 6.5%, and other parts of the mall had either 6% or 7%.

Then there's the question of what the tax actually applies to. There's no specific electronics tax AFAIK, but many places don't tax grocery store food (but do tax restaurant bills), have a lower tax on books, don't tax newspapers, etc. Basically to try to make the "necessities" less taxed than "splurges". There's extra car taxes sometimes. And generally extra gas/cigarette/alcohol taxes (these are also called "sin taxes" in case you're wondering). :silly:

[Darius Wey]

My-oh-my...that is one incredibly complex tax system. Thanks for that bit of information. Definitely something I can dream about tonight. :P

Down here, it's simple. One GST does it all! ;)

[yankeejeep]

My-oh-my...that is one incredibly complex tax system. Thanks for that bit of information. Definitely something I can dream about tonight. :P

Down here, it's simple. One GST does it all! ;)

Oh, that's not even the most fun part. Try to get a handle on how taxes are applied when a retailer ships an item to an address outside of the state where the store is located. It's enough to turn anyone into an anarchist.

[Darius Wey]

My-oh-my...that is one incredibly complex tax system. Thanks for that bit of information. Definitely something I can dream about tonight. :P

Down here, it's simple. One GST does it all! ;)

Oh, that's not even the most fun part. Try to get a handle on how taxes are applied when a retailer ships an item to an address outside of the state where the store is located. It's enough to turn anyone into an anarchist.

Hang on...now is that a tax, or just an application of shipping costs? Sometimes here in Australia, if items are shipped outside a particular state, you may have to pay an additional cost (although rare in most cases). I consider that a shipping cost, but you may beg to differ.

[Kati Compton]

My-oh-my...that is one incredibly complex tax system. Thanks for that bit of information. Definitely something I can dream about tonight. :P

Down here, it's simple. One GST does it all! ;)

Oh, that's not even the most fun part. Try to get a handle on how taxes are applied when a retailer ships an item to an address outside of the state where the store is located. It's enough to turn anyone into an anarchist.

Hang on...now is that a tax, or just an application of shipping costs? Sometimes here in Australia, if items are shipped outside a particular state, you may have to pay an additional cost (although rare in most cases). I consider that a shipping cost, but you may beg to differ.

So, if that retailer doesn't have retail operations in that state, they're not supposed to charge tax (currently), though I think NY has started charging their residents. If the retailer does have retail operations in that state, they are supposed to charge tax. So, because there's a Barnes and Noble a few miles away from my house, if I order from http://www.barnesandnoble.com , I have to pay tax. Even though it's not coming from that store, but instead a warehouse usually out-of-state.

[Darius Wey]

So, if that retailer doesn't have retail operations in that state, they're not supposed to charge tax (currently), though I think NY has started charging their residents. If the retailer does have retail operations in that state, they are supposed to charge tax. So, because there's a Barnes and Noble a few miles away from my house, if I order from http://www.barnesandnoble.com , I have to pay tax. Even though it's not coming from that store, but instead a warehouse usually out-of-state.

Thanks Kati! I was clueless as to how the US tax system worked. You learn something new everyday. I'll keep this in mind the next time I'm over in the States. :way to go:

[Mark Kenepp]

So, if that retailer doesn't have retail operations in that state, they're not supposed to charge tax (currently), though I think NY has started charging their residents. If the retailer does have retail operations in that state, they are supposed to charge tax. So, because there's a Barnes and Noble a few miles away from my house, if I order from http://www.barnesandnoble.com , I have to pay tax. Even though it's not coming from that store, but instead a warehouse usually out-of-state.

California requires that residence pay CA sales tax on all products bought out of state (whether bought from an out of state retailer and shipped to CA or bought while traveling to another state) unless that state charges you their own sales tax at time of purchase or, like you describe, they charge CA tax because they have operations in CA. I have seen some web sites that do not have operations in CA already require you to pay the CA tax to avoid the whole situation. Maybe California is making retailers that ship to CA pay the state tax themselves?

[Eowyn]

When visiting the US in 1990, I tried to buy a camera in New York. The price tag said $80. I handed over $80, but the assistant then said it was $100. Apparently, the extra $20 was for taxes and for the camera case which was extra (and which I didn't want) 8O . I then didn't want the camera and asked for my money back, and they gave me $60 back. Because I had been $20 short in what I handed over they were being $20 short in what they returned.

I stood my ground, and got my entire $80 back, but I was definitely unimpressed with consumer law which allows a price tag to be incorrect. (there was no fine print on the price tag). I since learned that that is because of the complex tax laws.

[Kati Compton]

When visiting the US in 1990, I tried to buy a camera in New York. The price tag said $80. I handed over $80, but the assistant then said it was $100. Apparently, the extra $20 was for taxes and for the camera case which was extra (and which I didn't want) 8O . I then didn't want the camera and asked for my money back, and they gave me $60 back. Because I had been $20 short in what I handed over they were being $20 short in what they returned.

I stood my ground, and got my entire $80 back, but I was definitely unimpressed with consumer law which allows a price tag to be incorrect. (there was no fine print on the price tag). I since learned that that is because of the complex tax laws.

They were wrong. The given price should be the price before tax, but you shouldn't have to pay more. And what you're saying about what they did with the $20 is ridiculous - I'm sorry they treated you that way. It's not standard practice in the US.

[SteveHoward999]

In the UK the price you see is the price you pay -- so if it says £80 on the sticker, that's what you pay. It's the law, and I have always known things to be that way.

Here in the USA you see a price (if you are lucky!) on the sticker, but they add tax at the counter. I don't think I have ever seen more than one or two places that show prices with and without sales tax. It infuriates me as I never know what I am going to pay ... a recent $5000 purchase turned into almost $6000 with tax 8O 8O

OK so I should have got used to it by now, but I have not.

As for 'importing' gifts into the UK ... I think all you need to know has been explained concisely. It will cost you more to declare any purchases (take of 7% US tax, ad 10% UK Import duty, plus VAT [maybe]) , and there is virtually no way that anyone is going to even try to get you for the tax on a couple of electronic goods.

Just don't go trying to smuggle a case full of 200 PDAs ;-)

[Darius Wey]

In the UK the price you see is the price you pay -- so if it says £80 on the sticker, that's what you pay. It's the law, and I have always known things to be that way.

Pretty much the same thing here in Australia. Prices are given with taxes already included, and in most cases, they reinforce the point by saing "inc. GST".

Here in the USA you see a price (if you are lucky!) on the sticker, but they add tax at the counter. I don't think I have ever seen more than one or two places that show prices with and without sales tax. It infuriates me as I never know what I am going to pay ... a recent $5000 purchase turned into almost $6000 with tax 8O 8O

Even so, when I was in the US, I found that everything seemed to have this "goodwill" tag added to it in the form of a tip. I was quite startled to see how "tips" have really blended into life over there.

[SteveHoward999]

Oh - I meant to say ... *apparently* the reason for not showing tax is to make it easier for the big stores to print one set of adverts/fliers etc, same price different state.

Personally I think that is absolute balony and the real reason is to get people to spend more ...

[Sven Johannsen]

In the UK the price you see is the price you pay -- so if it says £80 on the sticker, that's what you pay. It's the law, and I have always known things to be that way.

Pretty much the same thing here in Australia. Prices are given with taxes already included, and in most cases, they reinforce the point by saing "inc. GST".

Here in the USA you see a price (if you are lucky!) on the sticker, but they add tax at the counter. I don't think I have ever seen more than one or two places that show prices with and without sales tax. It infuriates me as I never know what I am going to pay ... a recent $5000 purchase turned into almost $6000 with tax 8O 8O

Even so, when I was in the US, I found that everything seemed to have this "goodwill" tag added to it in the form of a tip. I was quite startled to see how "tips" have really blended into life over there.

That's primarily for services though, waiters, hair stylists, bartenders. that sort of thing. It certainly doesn't apply to someone selling you a PPC or camera. Problem on taxes is that we have so many government entities, that are all still part of the US. If a smartphone is 500 EU, it may still cost more or less in Germany than England because of the differring GST/VAT, or whatever. You just put the full amount on the sticker. Here it costs more in one local or the other because we allow taxation by so many different entities. (And I thought we started this country because of a tax disagreement). We are just accustomed to paying the sticker, plus having the tax, whatever it may be, added at the register. When in Europe, I feel cheated by not having the sticker price be without taxes, because I don't know how indignant I should feel about all the damn taxes.

[Janak Parekh]

But most places there are. For example, when I was in the Chicago suburbs, it was 8.5% (considered high, but still lower than places in NY and CA, and lower than in Chicago itself - which was the same state, same county, different city).
Actually, 8.5% matches the highest NY metro area (suburbs), and is more than NYC itself (8.25%).

As for interstate taxation: yes, we used to get away for years with phone and Internet orders, but states have been looking at that as a source of revenue for years, and NY state has finally started a semi-voluntary experiment in taxing out-of-state Internet-based purchases. :( Couple that with the fact that many large businesses have operations in NY, and you end up paying tax on most anything at this point. Oh well. It's still cheaper than VAT, if I hear correctly.

They were wrong. The given price should be the price before tax, but you shouldn't have to pay more. And what you're saying about what they did with the $20 is ridiculous - I'm sorry they treated you that way. It's not standard practice in the US.
Agreed. Eowyn -- where in NYC did you try to buy a camera from? There are these little electronics retailers all over the place which are potentially unscrupulous (selling repackaged goods, etc.). The big stores are generally much better about that -- they simply sum up the price tag on all the items you select, and then add 8.25% (which, if I may add, is much less than $20 on $80) and I've never had a situation where I try and reject a purchase or request a refund where I'm not given the 100% of my original amount back. I suspect those electronics stores were trying to take advantage of a foreigner. :( They should all be shut down, and I'm sure people try, but it's hard to prove sometimes. NYC has a lot of fantastic shopping, but when it comes to electronics I focus on the bigger stores unless I need something specialty.

--janak