importing tax
- Thread starter Michael24
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Hi there! I just copied and pasted my post from a while ago for another Aussie only minutes ago. Here is the breakdown and what I paid to have my ering (stone and setting, complete ring) from WF sent to Melbourne.
Feel free to ask more questions. There are a couple of Aussies who hang around here. Ajunajane is another lovely lady who is more than happy to help.
I will break it down for everyone, that way I don''t have to calculate % (?!?!).
customs duty - $282.40
GST (on importations) - $607.27 (based on 5185US = 5648 AUS, as they estimate the x rate from the day of delivery)
Import declaration air charge - $40.20
AQIS Air entry charge - $14
TOTAL = $943.81 (whew!)
Feel free to ask more questions. There are a couple of Aussies who hang around here. Ajunajane is another lovely lady who is more than happy to help.
I will break it down for everyone, that way I don''t have to calculate % (?!?!).
Total price from WF = 5315 US, includes 130 shipping and insurance.
I paid $6063.23 (I think the x rate was 0.88c or thereabouts)
When the package arrived, I couldn''t pick it up without paying the following (never have you seen a credit card whipped out of my purse so fast!!!)
customs duty - $282.40
GST (on importations) - $607.27 (based on 5185US = 5648 AUS, as they estimate the x rate from the day of delivery)
Import declaration air charge - $40.20
AQIS Air entry charge - $14
TOTAL = $943.81 (whew!)
arjunajane
Ideal_Rock
- Joined
- Jan 18, 2008
- Messages
- 9,758
Hi Michael,
Honey has given you a great example.(thx sweetheart for the lovely compliment!)
I will portray what was told to me direct from customs, so hopefully its correct!
Situation one : Complete ring (diamond is set in ring):
- 5 % duty payable on value of ring and diamond.
- 10% GST payable on the value of the whole ring, plus duty plus freight and insurance.
- Processing fee of ~$69 (includes import declaration).
- Any other fees payable from shipping Co. eg. FedEx.
So an example, (I will just make up the value of the ring to keep it simple):
- Diamond cost $3500AUD, setting cost $1500AUD = total $5000.
Freight and insurance costs = $120AUD.
- 5% duty on $5000 value = $250.
- GST: $5000 (value), + $120 (freight and ins), + $250 (duty) = total $5370.
10% gst on $5370 = $537.
- Processing fee $69.
So , based on this example, all the import fees and taxes you will have to pay is $856. (duty + GST + fee).
This will bring the total cost of your item, all said and done, to $5976. (value + freight + duty + gst + fee).
Situation two:
You asked if there are any "loopholes" - I would say No, they are very serious about this stuff. However, that said, if you''re able to ask your vendor to list the diamond and setting separately on the invoice you can avoid paying duty on the diamond only.
Using the above example, that would mean you would pay:
- 5% duty on the setting only ($1500) = $75, (instead on the $250 on the entire value of the ring fro the above example.)
(the rest will be worked out the same, however the GST will also be less as there is a lower amount of duty - am I making sense?)
- 10% gst on $5000 (value) + $120 (freight) + $75 (duty) = total GST of $519.50.
So, in other words if you Could get your vendor to list the diamond and setting separately, using this example you could look to save $192.50.
However, in my opinion it may not be worth it? As I think Honey has mentioned previous, you may want to be cautious of this kind of thing incase it could void your insurance while in freight if something did occur? I''m not sure what the rules are, you would have to check. I also am not sure about a respectable vendor essentially "fibbing" on the invoice - after all, these are legal documents for customs. I just gave you the example as I''ve looked into it myself and you Did ask..!
Now, I am the first to admit i totally suck at maths and even though this is pretty rudimentary stuff if I''ve made mistakes people pls don''t lash me!
Michael, any other Q;s pls feel free - me and Honey and the other aussies on here Love seeing another fellow countryman discover the awesomeness of PS and its vendors! If you don''t understand my example or need more info please do ask - I will say I live in Perth, so not sure what city you''re in but I doubt it should change too much.
Good luck, and pls let us know what you plan to buy!
Honey has given you a great example.(thx sweetheart for the lovely compliment!)
I will portray what was told to me direct from customs, so hopefully its correct!
Situation one : Complete ring (diamond is set in ring):
- 5 % duty payable on value of ring and diamond.
- 10% GST payable on the value of the whole ring, plus duty plus freight and insurance.
- Processing fee of ~$69 (includes import declaration).
- Any other fees payable from shipping Co. eg. FedEx.
So an example, (I will just make up the value of the ring to keep it simple):
- Diamond cost $3500AUD, setting cost $1500AUD = total $5000.
Freight and insurance costs = $120AUD.
- 5% duty on $5000 value = $250.
- GST: $5000 (value), + $120 (freight and ins), + $250 (duty) = total $5370.
10% gst on $5370 = $537.
- Processing fee $69.
So , based on this example, all the import fees and taxes you will have to pay is $856. (duty + GST + fee).
This will bring the total cost of your item, all said and done, to $5976. (value + freight + duty + gst + fee).
Situation two:
You asked if there are any "loopholes" - I would say No, they are very serious about this stuff. However, that said, if you''re able to ask your vendor to list the diamond and setting separately on the invoice you can avoid paying duty on the diamond only.
Using the above example, that would mean you would pay:
- 5% duty on the setting only ($1500) = $75, (instead on the $250 on the entire value of the ring fro the above example.)
(the rest will be worked out the same, however the GST will also be less as there is a lower amount of duty - am I making sense?)
- 10% gst on $5000 (value) + $120 (freight) + $75 (duty) = total GST of $519.50.
So, in other words if you Could get your vendor to list the diamond and setting separately, using this example you could look to save $192.50.
However, in my opinion it may not be worth it? As I think Honey has mentioned previous, you may want to be cautious of this kind of thing incase it could void your insurance while in freight if something did occur? I''m not sure what the rules are, you would have to check. I also am not sure about a respectable vendor essentially "fibbing" on the invoice - after all, these are legal documents for customs. I just gave you the example as I''ve looked into it myself and you Did ask..!
Now, I am the first to admit i totally suck at maths and even though this is pretty rudimentary stuff if I''ve made mistakes people pls don''t lash me!
Michael, any other Q;s pls feel free - me and Honey and the other aussies on here Love seeing another fellow countryman discover the awesomeness of PS and its vendors! If you don''t understand my example or need more info please do ask - I will say I live in Perth, so not sure what city you''re in but I doubt it should change too much.
Good luck, and pls let us know what you plan to buy!
arjunajane
Ideal_Rock
- Joined
- Jan 18, 2008
- Messages
- 9,758
Greetings, I’ve been cruising this site for the last couple of weeks, and this was one of my many questions. I’m currently over in England with the plan of going over to Antwerp next weekend for a bit of diamond ring shopping (I have found myself an Irish girl I’m planning on marrying). I was trying to work out how tax would work either in the UK or when coming home to Australia. Looks like they get you one way or the other…
Thanks for going to the trouble to post this info. Still much to learn.
Cheers.
Grum
Thanks for going to the trouble to post this info. Still much to learn.
Cheers.
Grum
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