GST in China
Luxury goods are those items that people find to be very beautiful and have an inherent value. This value is established by the cost of production and its aesthetic appeal. Such goods are items such as art works, precious stones, and clothing. The goods that are imported into China are subject to a goods taxes called the luxury goods tax. This tax is applied on goods imported from countries with higher taxation rates like the European Union and the United States.
Many products of luxury are imported to China for its consumption. China itself is a country with very extravagant lifestyle. The country enjoys plenty of food and clothing and boasts of the best natural wonders in the world. Importers of luxury goods make huge profits from their business dealings in China.
Importers of luxury goods from other countries also enjoy the luxury goods tax benefit. They can purchase items that are imported into the country duty free and can sell these items to consumers in the country at a higher price than the one that they paid for the item in their country. This means a good amount of profit for them and a lot of money saved on the income tax that they would otherwise pay.
Luxury goods are particularly popular among the Chinese people. They look upon foreign luxury goods with great respect. Their love for foreign goods is manifested in the number of foreign movies being shown in Chinese theaters. Most famous Chinese actors and actresses are also very fond of expensive fashion jewelry and watches. Some of the most expensive and fashionable watches that Chinese people can afford are the Swarovski and Bulgucci.
Many items of luxury that are imported into China are not necessarily brand new. Many imports that have been manufactured and are being sold under a brand name. These branded goods are then sold off to importers and exporters who make a tidy profit by selling them to retailers in China. The importers do not need to charge any Goods and Services Tax on the purchases. On the other hand, when an item is imported into the country and is branded it must be sold under its brand name and the markup added to the cost of the item must be charged for this.
There are some luxury goods that are very valuable and can fetch a very high price. These include antiques, art pieces, rare collectibles, and works of art. In many cases the importation of such goods as antique items is not allowed by law due to the risk involved with them. Therefore, luxury goods that are imported into the country on a regular basis is called ‘trading with profit’ and if you are a businessman who regularly imports luxury goods you will have to pay the Goods and Services Tax.
However, if you are looking to buy luxury goods and sell them on the internet you will not have to pay GST. You will still need to register and pay the tax, but the rate will not be as high as it is for luxury goods imported into the country. If you are just buying stuff from eBay, you will still need to pay the tax because it is a UK tax. However, if you are importing luxury goods into the country, then the rate of tax will not matter.
The point is that there are no tariffs on luxury goods. If you are importing goods into China and they are luxury goods, then all you have to do is tell the customs officials that they are imports and pay the duty and taxes. If the Chinese government wants your goods, it will not let you evade the tax. It is a very simple thing to do and if you want to save on the tax, then you need to keep track of all your import and export business dealings with the Chinese authorities.