[Eriamjh]

This is for all the MacNN users who reside in countries other than the USA, whether they are citizens or travellers.

As you may or may not be aware, in the USA, when one purchases an item online, the user doesn't pay any sales tax on the purchase if the seller is outside of the buyer's home state AND the seller does not have a Branch or store in the buyer's home state. This has existed since catalog sales started long ago.

With typical sales tax between 4% and 9%, that amounts to a big savings on a $3000 PowerMac.

Here is the question: For the country you are in, what are the tax rules for ordering online?

Do people in Germany save money when ordering from France or vice-versa?

Are there work arounds for local and non-local online purchases related to tax savings? Can one buy from a neighboring country/state/province and save on taxes?

I am just curious and I thought it would make for good discussion.

[effgee]

As long as you reside within the European Community and purchase an item from another EU country you'll still pay sales tax (methinks you pay the tax rate applicable for the seller's location - not 100% sure, though)

If I (while being in Germany) buy an item from the US I have to pay import duties (IIRC - bought my processor upgrade from OWC 2 yrs. ago) which are even higher than the local sales tax.

As far as anything that's considered "office equipment" (or my car, for that matter) is concerned I really don't care, though - I have my own company and the German Finanzamt (= IRS) reimburses me for all sales taxes/duties paid on such items on a monthly basis.

Hence my next PB will most likely be bought from a US dealer ... can't beat the current exchange rates.

[D'Espice]

In Europe, you still gotta pay the tax. For example, sales tax in Germany is 16%. If I order something from outside of Germany, say France or Austria or the US, I have to pay what is called "Umsatzeinfuhrsteuer". There really is no English word for this. It's basically sales tax since it's 16% as well.

[effgee]

Originally posted by D'Espice:
... I have to pay what is called "Umsatzeinfuhrsteuer". There really is no English word for this. ...

How about "revenue-import-tax"?

[D'Espice]

Actually it's more like an import turnover tax or import sales tax. But nothing sounds as great as "Einfuhrumsatzsteuer"

[effgee]

Originally posted by D'Espice:
Actually it's more like an import turnover tax or import sales tax. But nothing sounds as great as "Einfuhrumsatzsteuer"

you looked that up, didn't you? or you must be an accountant.



and yes, german compound nouns (that's what they're called, right?) are the bomb - especially the bureaucratic ones invented by any amt/ministerium.

[Spliffdaddy]

The fact that you aren't asked to pay sales tax on out-of-state purchases doesn't mean you don't owe sales tax.

Your home state expects YOU to itemize purchases made out-of-state for use in your home state..and pay sales tax on those purchases.

Businesses in other states are not required to collect state sales tax for residents of other states besides their own. Just because they don't collect tax, it doesn't mean you don't owe a tax.

With all the online sales recently, states have started enforcing their tax laws in this respect. It's now mentioned on the front page of the state tax guides in my home state. I'd bet the tax laws are similar in most states.

In other words, you violate the law if you simply don't pay taxes on goods bought out-of-state (for use in-state).

Claiming that Apple didn't charge you sales tax is not an adequate defense for non-payment of sales tax.

[bells0]

Us Brits pay 17.5% Value added tax on anything imported from another country over the value of £18.00.

Think we also pay a customs tax too?? So it works out at something like 20% on top.

This is only if the customs people catch you, have got various things on ebay from the Usa up to £100 and never paid anything. Think they keep an eye out for the valuable stuff.

If i bought say a Powerbook on my jols, there's no way i'd declare it, would unpack before i set off home and say i had before i left [if i was caught, customs seeem slack at my regional airport]

With the exchange rate the way it is for Pound/Dollar, ebay items are stupidly cheaper at the mo, Paypal and ebay are rubbing their grimey paws together!!

[badidea]

I once bought a Quadra 630 in Los Angeles and send it back home to Germany (and continued travalling for some weeks). The day I left the US I got the sales tax back but I still had to pay the "Einfuhrumsatzsteuer" in Germany as D'Espice said + way too much money for shipping and insurance!
The whole deal wasn't any cheaper than buying in Germany!

[Goldfinger]

Belgian tax rate is 21% + a possible up to 30% (!!!) customs tax if they catch undeclared goods like a Powerbook sent to here. Hence why I will never risk buying a Mac in the US (unless, I'm there and can take it with me). If we buy something in another EU country the VAT from that other country counts. That's why I tend to buy expensive electronic items in Germany, "only" 16% tax and add to that the fact that ex-VAT prices tend to be lower in Germany.

[Sherwin]

Originally posted by bells0:
This is only if the customs people catch you, have got various things on ebay from the Usa up to £100 and never paid anything. Think they keep an eye out for the valuable stuff.

Like ciggies. Get caught coming across the border with what the customs guy on duty decrees is more than your personal stash and you'll get your car confiscated, cut up and sold to gypsies as hard-standing for caravan parking on green-belt land.

Don't ya just love free-trade borders?

[PacHead]

I've lived in Europe before, and whenever I came back from the US, I would throw out the packaging for anything I bought, and just make believe I had it with me when I left. (example - laptop)

There was no way in hell I was going to pay 25% + sales tax and/or ridiculous customs fees to a bunch of greedy socialists.

[Eriamjh]

Originally posted by Spliffdaddy:
The fact that you aren't asked to pay sales tax on out-of-state purchases doesn't mean you don't owe sales tax.

Oh, I am well aware that certain states still have laws that say one owes a "use tax" or whatever on stuff purchased out of state. That is not the question. I was just interested in how other countries handle the tax, if they collect it, if they can't etc.

[TETENAL]

Originally posted by Eriamjh:
Do people in Germany save money when ordering from France or vice-versa?

If you purchase within the EU you pay turnover tax to the country of the sale. If you purchase outside the EU you pay turnover tax to the country of your residency.

That means:

If a German purchases something in (or from) France he pays the turnover tax in France.
If a German purchases seomthing in (or from) the USA he pays the turnover tax in Germany.

Online or not doesn't matter. You might get something you purchased outside the EU through customs somehow but that would be illegal.

If you purchase downloadable software outside the EU you will have to inform the tax authorities and pay turnover tax. If you don't you're in trouble if it becomes known. Since that is time consuming for the customer companies outside the EU may collect European turnover tax from their European customers and forward it to a EU tax authority. Kagi does that for example. Ambrosia doesn't do it (see moki bitching about it in several threads in the political lounge), and that makes purchasing Ambrosia software complicated for EU customers (or illegal, but cheaper).