Buying online and paying tax?

[nanarama]

I have heard of people buying online then having the diamond shipped elsewhere to avoid tax - is this a common thing to do?
If I order a diamond from Whiteflash (which I believe is in Texas) and have it shipped o Leon Mege in NY to be set, what tax do I pay and how does that work? I know tax on a pricey diamond can be a lot, so I should probably be educated in this!

 

[luv2sparkle]

If you don't live in Texas, you won't pay sales tax, if you don't live in New York, you won't pay sales tax from Leon either.
It is up to you to claim it and pay it on your income tax.
I know you should, really I do....

If you live overseas, you do pay taxes and duty charges which vary from country to country..

 

[yssie]

Avoiding use tax is common. It's also illegal, and not something to cavalierly admit to doing on a public forum, IMHO.

Article:
https://www.pricescope.com/journal/internet_and_sales_tax_free_ride_or_not/

 

[LGK]

Yeah, legally, what you're supposed to do if you purchase something from another state and aren't charged that state's tax, you're supposed to pay your own state's sales tax on it. Like, as a WA state resident, if I purchase something from Florida, I am supposed to pay the sales tax of 8.6% on the purchase to WA. It is essentially on the honor system, and what's more, to be perfectly honest, a lot of people are simply unaware of how that's supposed to work, and thus it's pretty common for people to not pay it. Of course, it is illegal to skip out on paying the tax, one way or another.

 

[nanarama]

I live overseas so just to make it clear, I'm not trying to avoid tax, I was just wondering what the process is. I suppose none of it applies to me though as a non-US resident and I only pay duty when I bring the diamond into my country.

 

[cachia85]

I also have a question about paying tax. I live oversea so when diamond is shipped to me I have to pay tax, but then if I decide to return the good because I don't like it or I want to exchange then the tax that I paid is wasted. If I don't use the item why do I have to pay tax for it? And if I gonna exchange then I will have to pay the tax again!

 

[nanarama]

cachia - I have no idea, that is a good question!

I was also thinking, that even though I don't live in the US, I will still have to pay sales tax because won't Leon (or whatever retailer) add sales tax onto the price? Just like when I go shopping in the US I still have to pay sales tax even though I'm not a resident. Its only Europe where you can get the VAT or tax refund at the airport.

 

[luv2sparkle]

Avoiding use tax is common. It's also illegal, and not something to cavalierly admit to doing on a public forum, IMHO.

Article:
https://www.pricescope.com/journal/internet_and_sales_tax_free_ride_or_not/

I don't believe I said I didn't pay it. Jump down off that high horse.

 

[yssie]

Avoiding use tax is common. It's also illegal, and not something to cavalierly admit to doing on a public forum, IMHO.

Article:
https://www.pricescope.com/journal/internet_and_sales_tax_free_ride_or_not/

I don't believe I said I didn't pay it. Jump down off that high horse.

This is not the first sales tax question/discussion, and it won't be the last, and based on certain responses in prior threads I caution posters to remember that internet archives remain (easily accessible) forever.

I wasn't responding to you, your taxes are of no concern to me

 

[denverappraiser]

Sales and use taxes are, in general, imposed by the LOCAL taxing authorities. This means for people living outside of the US, it's the local taxman in the place where you live who controls it and you may or may not owe taxes at the point of importation. For Americans living overseas, there may be a taxable obligation if and when you return home and import the merchandise into the US but for overseas foreigners or US expats who never bring it into the country I think you are safe, at least from this particular tax.

With most countries, if you import something, pay the taxes, and then return it, you will probably be elligible for a refund for some or all of the taxes paid. How difficult this is to navigate will be up to the local taxman and they don't have a big incentive to make it easy. You should be able to get the required forms and read the rules from the customs office or from whatever agency you paid the taxes to in the first place. As with the US states, they make their own rules and they can make it as easy or as difficult as they wish. If you're worried, ask 'em.