Sales tax on goods bought in the states
Sales tax on goods bought in the states
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Muncher

Original Poster:

12,235 posts

280 months

Monday 22nd September 2008
quotequote all
I'm looking to buy a few things from the States which will be sold in one state, shipped to California then posted to the UK from there.

What are the local sales tax implications of this? Obviously I want to avoid as much tax as possible and I vaguely recall that if goods are destined from abroad local sales tax is not applicable?

Edited by Muncher on Monday 22 September 23:38

jeff m

4,066 posts

289 months

Monday 22nd September 2008
quotequote all
I didn't quite understand the "sold on in state" bit.

But, basically an out of State purchase will not attract sales tax.
eg I'm in NJ if I buy something in CA I will not be charged CA sales tax.
If you are in UK and buy from CA there should be no sales tax.

BUT, is somebody buys it for you in CA and then ships it to UK for you then Sales Tax is charged at the point of sale. It's an "in State purchase".

This is a very basic explanation. There are quite a few exceptionssmile

I'll have a guess at the "Sold on in State" bit.
If I buy something in my own State and I am not the end user then I can give the seller a State form ST3 in my case (NJ) which allows the seller to make a tax excempt sale.

jeff m

4,066 posts

289 months

Monday 22nd September 2008
quotequote all
One relevant exception is when a National chain makes a sale to a state in which it has offices or interests.
eg I mail order something from Wal-Mart in California, I live in New Jersey. Sales tax is payeable because Wal-Mart has stores in NJ.



Edited by jeff m on Monday 22 September 23:43

Muncher

Original Poster:

12,235 posts

280 months

Thursday 25th September 2008
quotequote all
The issue is the two companies I will be ordering from state a blanket price on their websites which must be inclusive of any sales tax. Therefore, if I'm having it sent outside the state I should be entitled to negotiate some kind of discount on that basis?

jeff m

4,066 posts

289 months

Friday 26th September 2008
quotequote all
Muncher said:
The issue is the two companies I will be ordering from state a blanket price on their websites which must be inclusive of any sales tax. Therefore, if I'm having it sent outside the state I should be entitled to negotiate some kind of discount on that basis?
The stated price is sans sales tax.
If you are actually in the store and the article is $1.99 the sales person will ask you for $2.13 (7% S.Tax)

Prices are quoted net. ST is added.