Cool Wholesales's Blog7/12/2012
Do I have to pay tax?
"Do I have to pay tax on orders I buy at Coolwholesales.com?"
Maybe. It depends on the specific country that is receiving the shipped goods.
Tax is a very complex issue, and varies from one country to another. Some countries are easy to import goods into, and have few restrictions and no taxes. Other countries are incredibly restrictive and have high import taxes. Before you start to import larger quantities of China goods to your country, you will need to research what the law and import practices are in your country (or for the specific destination countries that you are dropshipping into).
Please read the following notes for some basic background:
Import Duty and Sales Tax charged by your country
Depending on the specific country, some Customs offices charge tax on certain types of imported products at certain item quantities and declared values. Customs offices in other countries do not adopt this practice. You are responsible for finding out the situation in your own country.
Whatever goods you order from Coolwholesales.com, we will ship to you. We will not enforce any rules so it is up to you to make sure that what you are purchasing from us is acceptable to be imported into your country.
Many countries charge two kinds of tax when you import from overseas: sales tax (VAT) and import duty. Generally, these two taxes are not very high and the payable amount of tax is based on the declared value of the goods (and occasionally the shipping). Conversely, many countries do not charge any tax on certain types of goods, or on shipments which are small enough.
Declared Value: Packet Value affects Tax
Usually, importing large quantities of goods from overseas is strictly controlled by your country's Customs, but smaller quantities can be imported more easily. The exact definition of "large quantity" and "small quantity", often defined by a value "threshold", varies from country to country.
The term "ad valorem" in import taxes means that the tax you have to pay is calculated as a percentage of the total value of the goods (and sometimes the shipping cost too).
Declared Contents: Packet Contents Affect Tax
The category and type of goods you are importing often has an effect on whether you have to pay tax, or how much.
Obviously, certain categories of dangerous or restricted goods are illegal to import in most countries. Other specific restrictions on certain items such as spy cameras and jammers may also apply in your country. Please carefully research the relevant information for your local country.
The declared contents of a package must be true and accurate for Customs purposes.