US v. Can - Novice looking for deal

[Tone]

Ok, I''m saving up for a ring and have a budget in mind. I DONT KNOW ANYTHING ABOUT THIS STUFF. Its a little overwhelming.

I live in Seattle, which is not far from Vancouver BC. I was in a store in Vancouver this weekend asking about implications and considerations of buying a ring in Canada v. the U.S (while the future fiance was shopping elsewhere). This guy proceeds to tell me, "Oh everyone from Seattle makes the drive to Canada to purchase their jewelry (particularly diamonds). The US has high import tariffs on diamonds, combine that with the exchange rate and you increase your spending power by 50% to 80%. I don''t know how stores in Seattle stay in business! Even rich people from California spend money on airfare and hotel when making jewelry purchases of $10-12k or more and still save money in the end."

1st question(s): Is the above true? Is is worth the drive (2+hrs) to Canada to pruchase an engagement ring? Is my spending power greatly increased so much?

He then tells me that that I only have to pay PST and GST. Apparently there are no customs or "excise" taxes on rings. No additional taxes, duties, or anything has to be paid. These only apply to loose diamonds or if you buy a certain quantity of rings and/or diamonds. For example, if my budget is:

$6500 U.S. (total spending price, inclusive of an 8.8% sales tax in Seattle).

Then the equivalent Canadian would be approx $9100 which includes PST & GST). Then I would receive a GST refund of 7% coming back across the border!?!? Thus increasing my spending power even greater!?!?!

2nd question: Are the assumptions above -regarding taxes- true (only PST in the end)?

Thanks for the help. I have a feeling I''ll be referring back to this site quite often before making the final purchase.

 

[Rank Amateur]

If you drive to Oregon do you save the 8.8% sales tax?

I don't know the ins and outs of carrying diamonds over the border, but I do know bullshit when I hear it.

And my bullshit detector was going nuts when I read your above post!

R/A

 

[ice_is_nice]

If you are purchasing a diamond in Canada that has been mined and cut in Canada than you likely would not have to pay the excise tax. I believe that any diamond coming into Canada would be subject to the 10% excise tax. As for the GST, all non-residents of Canada can make a claim for a GST refund on any item purchased in Canada and not just for diamonds. If you want to be sure you might want to consider calling the Canadian Jewellers Association. They might be able to provide you with further assistance.

 

[canadiangrrl]

Agree wholeheartedly with Rank Amateur. Sounds like a load of bunk.

Diamonds are cheaper in the US, for a variety of reasons. I'm Canadian (hence my user name) and my better half is American. I've looked at both Canadian and US vendors, and the US vendors have the winning advantage on price - by a fairly substantial margin. When we finally pull the trigger, we're going to be buying in the US. The advantage for us is that he resides in the US - so no evil import duties, taxes, etc.

My advice, if you and your intended are both Canadian residents - buy online from a US company. Check out Good Old Gold, NiceIce, Dirtcheapdiamonds, etc. Get the diamond you choose appraised from by an independent. And then have it shipped to a FedEx facility close to the US/Canadian border. Whether or not you choose to declare it is, of course, entirely up to you.

 

[canadiangrrl]

DOH!

I just re-read your post and realized that you're NOT in Canada. My apologies - it's late here.

But my advice still stands (most of it, anyways.)

Buy from a US online vendor. Save yourself some dinero.