Taxes and Import Duties
"Do I have to pay tax on orders I buy at YoGadgets.com?"
Sometimes, yes. It depends on what country you are receiving the goods in. You may need to pay some taxes on your local side when you receive goods. Please read below for more information.
When you buy from China, and the products are delivered to your country, this is by definition importing. This means the process to receive the goods will usually be different to simply buying mail-order products from shops inside your country.
IMPORT DUTY AND SALES TAX CHARGED BY YOUR COUNTRY
Some countries charge tax on certain imported products, at certain quantity/value levels. Some countries do not. Whatever you order from YoGadgets, we will send you. We won't enforce any rules so it's up to you to make sure that what you are buying is legal to import into your country.
Many countries charge two kinds of tax when you import anything from overseas. These are (1) Sales Tax (VAT); (2) Import Duty. Usually these taxes are not very high, and the tax is calculated according to the value of the goods (+ shipping sometimes). On the other hand, many countries do not charge any tax on certain types of goods, or on small shipments.
DECLARED VALUE: PACKET VALUE AFFECTS TAX
Usually, importing big quantities of goods from overseas is controlled by your country's customs quite strictly, but smaller quantities can be imported more freely. The definition of "big quantity" and "small quantity" (often defined by a value "threshhold") varies from country to country.
The term "ad valorem" in import taxes means that the tax you have to pay is calculated as a percentage of the total value of the goods (+sometimes the shipping too). Obviously there would be an advantage to declare the value of the goods lower in such cases. This is known as "under-declaring" the goods and is not permitted, despite being widespread practice. Any customization you request from us in regard to declaration value on the shipping paperwork is at your own risk.
DECLARED CONTENTS: PACKET CONTENTS AFFECT TAX
The category of goods you are importing often has an effect on whether you have to pay tax, or how much. Obviously, certain categories of dangerous or restricted goods are illegal to import in most countries. Other, specific restrictions on certain items such as laser products or AV recording devices may apply in your country as well. The declared contents of a package must be true and accurate for customs purposes. Any customization you request from us regarding declaration of packet contents is at your own risk.
TAX AND AIR MAIL PACKETS
Typically, taxes are more often / more strictly applied to courier shipments (UPS, FedEx, DHL) than postal shipments (Air Mail, USPS, EMS). In many countries, for single items, postal shipping is a simple way to reduce or eliminate import taxes. However, shipping by air mail is not necessarily a guarantee of avoiding such taxes.
HOW TO PAY IMPORT TAXES
If you have to pay any tax on the goods you receive, the most common way is that the taxes are first paid at customs by the courier (e.g. DHL, FedEx, UPS) and then you simply pay back the courier using cash or your credit card, when they deliver the goods to your door. On bigger orders (meaning, for most countries, anything more than one or two cartons) you should consider hiring a professional licensed Customs Broker to assist you with the clearance of your goods when they arrive in your destination country. This is because tax and contents assessment is applied most strictly to bigger shipments.
WHY YOU NEED TO DO YOUR OWN RESEARCH
Import and tax rules are (a) different in every country; (b) changing often; (c) highly dependent on the shipment size and contents; and (d) not consistently applied by your country's different ports and customs houses. Therefore YoGadgets cannot offer you specific advice about how much tax you will have to pay, or any guarantees related to this issue.
WHO PROVIDES IMPORT PAPERWORK?
In general all the paperwork required for clearing your goods through customs is provided by YoGadgets. Usually the shipping invoice and courier waybill included with all shipments from YoGadgets is sufficient. Sometimes additional paperwork such as product licences are required by customs. We track all of your shipments until they reach you, so if there is such a requirement, we will respond to it promptly on your behalf, usually without the need for you to take any action.
You may need to show a copy of the shipping invoice to receive your products in some cases, and we will give you the papers you need on request.
The importer/customer of YoGadgets is solely responsible for all import taxes, sales taxes, and any other customs-related charges. YoGadgets accepts no liability for any such charges. Importing taxes and charges cannot and will not be quoted/predicted, and they cannot be reimbursed to you under any circumstances.
If you refuse to pay taxes or otherwise refuse to comply with requirements of the importing or customs clearance process, the goods will usually not be delivered successfully. In such cases the goods could be seized by customs, destroyed, or returned back to China. In any such cases you, the importer, bear sole responsibility provided no error has been made by YoGadgets in following your order requirements.