In a recent article on our site, we looked at the difference between ordinary and luxury goods and taxed under the Goods and Services Tax (GST). Now, it’s time to look at luxury goods. In the article, we also briefly looked at importers and retailers as they relate to the Goods and Services Tax (GST).
Luxury goods, when imported or exported to other countries, fall into a special category of import or export duties. Under the common law, the duty is not due when importing luxury goods, but the government insists on collecting the tax. For example, an American company that ships cars to Australia will be charged with Goods and Services Tax upon arrival. The importer must then pay customs duty on each of the car’s sale and must declare all sales tax collected on the declaration.
The procedure for claiming luxury goods under the GST is quite similar to that for regular goods. However, some importers and exporters are not familiar with the rules under the Australian Excise Determination Act. Therefore, they may choose to consult a professional instead of attempting the issue themselves. This can be quite helpful, as it means that importers have someone else to look after the paperwork. The tax office itself is quite helpful, however, in assessing the duty and tax liability. It can also notify importers of possible changes to the law so that they can adjust accordingly.
An importer does not need to directly communicate with the tax office regarding an imported item. There are many indirect ways to discuss duty determination. Most importers should keep records of any correspondence with the tax office, including correspondence regarding proposed imports. They should forward copies of all correspondence to the importing company, which should forward them to the tax office for processing. Sometimes, an importer may be able to save money by declaring the items to the wrong class of goods and then paying the low duty charges on them.
Luxury goods include items such as clothing, wine, jewelry, paintings, artworks, antiques, furniture, accessories, musical instruments and sports equipment. If you are importing luxury goods, it is important to understand that such goods are not subject to the standard goods and services tax. Because this is the case, many importers will choose to pay the higher goods and services tax instead. If you are importing luxury goods, you should also learn about the special rules regarding what are luxury goods and what are regular goods for resale purposes.
Some importers will even take their foreign clients directly to the customs office in order to have their goods processed before the tax day. However, many importers do not like to deal directly with the tax authority. In most cases, they will take their clients to an audited importer who will prepare and file the appropriate documentation. This can be done as early as the second week of April of each year.
Luxury goods importers will need a prescription from the local customs department to import luxury goods. Before visiting the customs department in Washington, D.C., an importer should make sure he or she has all of the necessary documents and information needed to begin the process. Many importers do not prepare their own prescriptions and some importers may be able to obtain the necessary information from the local pharmacies. If your local pharmacy does not carry luxury goods medications, you should consider looking for another local pharmacy that does.
As you can see, the tax day does not always bring about great financial opportunities for importers. However, if you know what are luxury goods before tax day and how to properly document and account for them, you will find that you can sometimes save a significant amount of money on what are luxury goods. You should keep in mind that every importer is different, and what are luxury goods may not be appropriate for your particular business.