Author Topic: What is your last watch purchase before Malaysia 10% SST (6%) implemented?  (Read 14450 times)

Offline Cocas

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What is your last watch purchase before Malaysia 10% SST (6% for service) implemented?
« Last Edit: July 16, 2018, 04:53:01 PM by Cocas »

Offline engkow

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Watches in Malaysia was duty-free before GST came in.

Offline Cocas

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Here is the 10% SST news today. ;)

Offline tim.thavi

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Dumb question but whats the diff between GST and SST?

I guess the 'sevices' is the same but how is watch treated differently under 'goods' and 'sales'?

Offline Cocas

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http://www.customs.gov.my/en/_layouts/15/customapplication/AnnouncementsDetails.aspx?ID=309

Oh no! Announcement on 19-July.

I will be better to get a Rolex for my wife now. :Startled:

Offline tim.thavi

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http://www.customs.gov.my/en/_layouts/15/customapplication/AnnouncementsDetails.aspx?ID=309

Oh no! Announcement on 19-July.

I will be better to get a Rolex for my wife now. :Startled:

I'm bad at reading any official document. So I suppose 10% SST will be applicable to watch?

Offline Cocas

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http://www.customs.gov.my/en/_layouts/15/customapplication/AnnouncementsDetails.aspx?ID=309

Oh no! Announcement on 19-July.

I will be better to get a Rolex for my wife now. :Startled:

I'm bad at reading any official document. So I suppose 10% SST will be applicable to watch?

Almost all watches are imported in Malaysia, so 10% Sales Tax will be imposed and price increase for new and preowned piece is inevitable.

Offline flatcap200

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Checked the old legislation & found that watches were not listed under the taxable goods schedules.

In fact under the old regime just prior to gst, watches & cameras were apparently exempted.

Need to wait for the new law to be sure.

Offline meoramri

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Checked the old legislation & found that watches were not listed under the taxable goods schedules.

In fact under the old regime just prior to gst, watches & cameras were apparently exempted.

Need to wait for the new law to be sure.

Correct, both items are not subjected to import tax. However, still subjected to GST.  SST should be similar. Question is will the 10% be passed directly to end consumers? We have to wait for more clarity to gauge the possible impact. Either way, assume the worst and get all your watch shopping before the deadline


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Main watch blog visit: http://easternwatch.blogspot.com

Offline downsouth

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Dumb question but whats the diff between GST and SST?

I guess the 'sevices' is the same but how is watch treated differently under 'goods' and 'sales'?
GST (6%) is a tax at every level of the sales process.

1. If a manufacturer sell a product at RM 10.00 the the GST will be RM 0.60, making the cost to distributor RM 10.60 and if the distributor decided to make RM 1.00 profit then the GST will be RM RM 0.06, making the total cost to retailer RM 11.66 and if the retailer decided to make RM 1.00 profit then an additional GST of RM 0.06 will be levied, making total cost to consumers RM 12.72

SST (the sales tax part) on the other hand work like this:

2. If a manufacturer sell a product at RM 10.00 the SST will be RM 1.00, making the cost to distributor RM 11.00 but if the distributor and retailer each decided to make RM 1.00 profit each, they will no longer be levied any Sales Tax making the total cost to consumers RM 13.00

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Offline tbgreen

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Look like really need to pull the trigger now rather than late!!!

Offline tayman

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Omega Seamaster Aqua Terra Quartz

Offline downsouth

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Dumb question but whats the diff between GST and SST?

I guess the 'sevices' is the same but how is watch treated differently under 'goods' and 'sales'?
GST (6%) is a tax at every level of the sales process.

1. If a manufacturer sell a product at RM 10.00 the the GST will be RM 0.60, making the cost to distributor RM 10.60 and if the distributor decided to make RM 1.00 profit then the GST will be RM RM 0.06, making the total cost to retailer RM 11.66 and if the retailer decided to make RM 1.00 profit then an additional GST of RM 0.06 will be levied, making total cost to consumers RM 12.72

SST (the sales tax part) on the other hand work like this:

2. If a manufacturer sell a product at RM 10.00 the SST will be RM 1.00, making the cost to distributor RM 11.00 but if the distributor and retailer each decided to make RM 1.00 profit each, they will no longer be levied any Sales Tax making the total cost to consumers RM 13.00

Sent from my SM-N950F using Tapatalk
On the other hand, if the distributors and retailer are making a bigger margin the calculation will favour SST over GST (to the consumers):

1. Manufacturer sells RM 10 + GST RM 0.60, and distributors and retailers adding RM 10 profit + GST RM 0.60, making the price consumers pay = RM 21.20

2. If it is an SST then, Manufacturer sells RM 10 + SST RM 1, and distributors and retailers adding RM 10 profit, making the price consumers pay = RM 21.00

Hence, if the total added value at the next value chain is big, the SST is better for consumers. If the total value added at the next value chain is low, the GST is better. Having said that, a manufacturer can establish a separate trading company and transfer the pricing down the value chain to lower its SST.

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Offline flatcap200

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Very interesting replies here. TQVM all.

Bottom line is there is a strong likelihood prices (of our beloved timepieces) will rise. Will they go through the roof as happened during the GST era? Probably not...but the best way IMO is to review the draft legislation. That way, we'll know for sure.

To buy now may be a hasty act and make us fodder for the retailers  :'( 

Unless of course we're in it simply to justify our pent up purchasing decisions  ;)   

Offline dstudio10

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i have been eyeing on an omega speedy... hopefully i can pull the trigger in time before the sst kicks in ... before that, i need to let go 2 pieces to fund it (1 of it is being advertised)...

Offline flatcap200

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Maybe if you sell yours after SST kicks in you'll get more coz by then everything else would've increased  :thumbsup:

Offline ethan89

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Visited Audemars Piguet (AP) boutique yesterday, confirmed price will be increase after SST being implement, either 8% or 10%.
Stocks upon waiting list will be arrive after Oct.

Offline flatcap200

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Visited Audemars Piguet (AP) boutique yesterday, confirmed price will be increase after SST being implement, either 8% or 10%.
Stocks upon waiting list will be arrive after Oct.

If watches end up being exempted under the yet-to-be gazetted law such an increase will be plain and simple profiteering. Be careful not to end up being fodder for sales folk  ;)

Offline irmavep23

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what would be the SST for watches now?

Offline flatcap200

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Logically, there shouldn't be an increase in existing inventory but I think we can all expect otherwise  :(

Offline Cocas

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http://www.customs.gov.my/en/_layouts/15/customapplication/AnnouncementsDetails.aspx?ID=309

Oh no! Announcement on 19-July.

I will be better to get a Rolex for my wife now. :Startled:

Mission accomplished  :thumbsup:

Offline tim.thavi

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Offline aiman04

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Re: What is your last watch purchase before Malaysia 10% SST (6%) implemented?
« Reply #23 on: September 03, 2018, 01:42:06 PM »
Hey guys, new here. I purchased a watch from Lazada on 31st August but they shipped it from overseas. I guess SST is imposed on date of arrival, not date of purchase right?

Anyone already has experience being imposed SST on imported watch yet?

Offline J.Tan

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Re: What is your last watch purchase before Malaysia 10% SST (6%) implemented?
« Reply #24 on: September 03, 2018, 01:56:03 PM »
last heard SST reduced to 6% for watches. Wonder if it is true.
Crown all the way...Rolex