Fellows,
Suppose a purchase is made in the USA, and shipped to a local (USA) forwarding depot (for forwarding to SA) : under these circumstances sales tax is due in the USA on items shipped to a local USA destination. Is this tax value supposed to be excluded or included in the SA Customs VAT / Duty calculation on arrival of the item in SA ?
example:
You purchase a $100 item in the USA and ship it to the closest freight-forwarder there. The local (USA) destination incurrs 8.8% sales tax ($8.8) which is disclosed in the billing/invoice which you have paid. The item is then forwarded to SA and subjected to SA Customs Duty and Excise. Is the sales tax paid at the international destination ($8.8 in the USA) included or excluded in the SA Customs / VAT / Duty calculation ? (Discuss for 15 marks).
Thanks
Marantz123.
Suppose a purchase is made in the USA, and shipped to a local (USA) forwarding depot (for forwarding to SA) : under these circumstances sales tax is due in the USA on items shipped to a local USA destination. Is this tax value supposed to be excluded or included in the SA Customs VAT / Duty calculation on arrival of the item in SA ?
example:
You purchase a $100 item in the USA and ship it to the closest freight-forwarder there. The local (USA) destination incurrs 8.8% sales tax ($8.8) which is disclosed in the billing/invoice which you have paid. The item is then forwarded to SA and subjected to SA Customs Duty and Excise. Is the sales tax paid at the international destination ($8.8 in the USA) included or excluded in the SA Customs / VAT / Duty calculation ? (Discuss for 15 marks).
Thanks
Marantz123.
