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I talked to an accountant ans she told me about the VAT policy where if you go overseas and buy something as a US citizen they give you a slip to fill out and get a refund for your taxes. That I have lived through and understand.
What I dont understand, and she could not answer me fully, was the policy on online shopping as a US citizen buying overseas. She said they should not charge for taxes. But I asked her the name of that law so I can cite it and she didnt know. Please say you know!?
I thought so. Thanks-what happens now?
I cant give you a rating until I get the next expert , hang on!
Hello, Thank you for helping. To answer your questions, I buy in several countries -usually fashion items sold out here in the US. The only time I ever paid VAT was in Barcelona Spain, in person at the store and I failed to carry it to its conclusion ie. didnt finish it. Otherwise goods are always shipped to me. I do pay shipping and customs fees too. Usual countries are Great Britain, Spain, Australia, Italy, China, and it varies. I have been buying products overseas for over a year now! My question is, if on my purchase order it says tax, how do I know if its a VAT or Use Tax?
I appreciate your inclusion of info having to do with me as a seller, but lets simplify. I'm just an ordinary CT citizen, and I buy fashion goods on different online out of the country websites dedicated to selling fashion goods. They charge me tax almost every time to the point I dont even question it. If it cant be VAT because you said when they ship to me they cant include it, there is only usage tax left to wonder about. I ask about the usage tax/VAT tax (if its a mistake).
Which brings me to this paragraph:
"Because you are in Connecticut - when you sell or ship to customers in Connecticut - you are required to collect sales tax. If goods are shipped to customers outside Connecticut - you are not required to collect sales tax for these states as long as you have no nexus if these states - but buyers might be required to pay use taxes." I assume here "you " means the other country, and the other country is required to collect sales tax. But I got lost because I dont ship goods to any customers so I think this paragraph doesnt apply to me. If I assumed "you " means the other country, then, you/they are not required to collect sales tax for these states/ME as long as you have no nexus (nexus?) if these states - but buyers might be required to pay use taxes.-the last part made sense kind of... I'm sorry this is not my specialty.. can we give it one more shot?
Oh, no I am just a designer fashion lover! I follow trends and sometimes the things I want I'm really chasing because they sell out SO quickly. They sell out of US stores and then I'm forced to look online to see who might still have it. Usually I'm so desperate by then that I dont care what country I 'm buying from as long as its the same price as in the US. But I'm aware of the possible customs charges, and the regular shipping which alone is much more, but taxes I was never sure how they justified it because I am not a resident of their country. I never know if I'm paying their countries taxes or US taxes or CT taxes. Thats what all my confusion is about.
Great I'll take it. think i've taken enough of your day. Thanks sir, expect payment shortly!