Overseas purchased subjected to GST?

[ViiiLaix]

Hi guys, there's a question wondering in my head. Some of us like to purchased watch online at overseas mostly that EU so that we'll be benefited of the VAT saved (19%). For the moment (March 2015), watches is still subjected to tax-free in Msia, if the GST is implemented next April, how much is the damage imposed?

Based on my knowledge if i'm not mistaken, if the goods >500RM it will be categories as high value goods.
and it'll be subjected to 20%custom tax and 6%GST ? Let's say we bought ABC watch brand, that actually cost RM5000.
Now, will it be subjected to tax it'll become RM6360? And the difference is RM1360 with is quite a damage,
which already taken 27% of the actual watch price. Correct me if I'm wrong, newbie here. Lol. Please advice..

Is there a way to "take the cure" from this subject matter ?
A Quote from my favourite watchmaker "To break the rules, you must first master them."

Are there any sifus mind to share "unofficial path" for those who are not aware, so that they will not repeating their "wrong doing" action. Ship the watch under Return For Repair? Warranty claim? The seller mistakenly put a lower price?
Please advice for those who are not aware.

Thank you for sharing.

[dpkong]

To break the rules, wear the watch on the wrist and not declare it...

[Friedrice]

Well, from what I understand, if the watch is a one off and not for resale, it is tax exempted. So, claim your VAT at the airport with the forms you get from the merchant and once you reached our shores, just walk through the green lane.

As long as you are NOT buying to resell, it is ok.

Also, watches are duty free. So, only sales (GST) tax apply.

But, I feel that you should support our local merchants and not buy from foreign merchants. We have an official forum watch dealer. Use them for a piece of mind.

[ViiiLaix]

True. but I'm looking for a certain german brand model. Which is hard to find at the dealer here. The only way is to purchase online.

[Friedrice]

True. but I'm looking for a certain german brand model. Which is hard to find at the dealer here. The only way is to purchase online.

If you are buying online and going through the customs, ask the watch seller to label it as either sample or gift to avoid the GST.

If the watch comes in before April 1, it is duty and GST free. But once GST is applied, you must pay 6% GST.

[hidden830726]

True. but I'm looking for a certain german brand model. Which is hard to find at the dealer here. The only way is to purchase online.

What brand? just curious.

[hidden830726]

True. but I'm looking for a certain german brand model. Which is hard to find at the dealer here. The only way is to purchase online.

If you are buying online and going through the customs, ask the watch seller to label it as either sample or gift to avoid the GST.

If the watch comes in before April 1, it is duty and GST free. But once GST is applied, you must pay 6% GST.

Sample / GIFT? hmmm, ok will try that

[Timeless]

Should try gift, sample may incur tax i guess

[CKL1213]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

[Friedrice]

I have done similar stuff before but not with watches. I brought back 2 extra pairs of shoes.

The customs checked my bag and didn't bother taxing me on the shoes. Instead they flagged me towards the exit.

Watches are duty free in Malaysia so I don't think the customs will tax you on a single watch.

[hidden830726]

Im more towards buying from german and subject to the 6%, but if declare as gift means, they state its a gift on the documents?

[Friedrice]

Im more towards buying from german and subject to the 6%, but if declare as gift means, they state its a gift on the documents?

Yes. Also the value will be declared at €1.00. This is because when importing, the shipper needs to declare a value for insurance purposes. So, the shipping invoice will declare the item as gift and at €1.00 value.

But a lot of European companies will refuse to do this as it is unethical.

[Yoda]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

SURE KENA. YOU WILL BE GIVEN A CUSTOM FORM TO DECLARE WHEN COMING IN. IF YOU DECLARE NO DUTIABLE ITEM BUT CHECK AND FOUND BY THEM WHEN PASSING WILL ALSO KENA PENALTY

ASK THE AD OVERSEAS TO COURIER BACK THE BOX FOR YOU. AND YOU WEAR YOUR WATCH COMING IN.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

SAME THING SEND THE BOX WEAR TWO WATCHES ONE ON THE RIGHT AND ONE ON THE LEFT CANNOT MEH

[ViiiLaix]

True. but I'm looking for a certain german brand model. Which is hard to find at the dealer here. The only way is to purchase online.

What brand? just curious.

Damasko DC56 si

[ViiiLaix]

Im more towards buying from german and subject to the 6%, but if declare as gift means, they state its a gift on the documents?

Yes. Also the value will be declared at €1.00. This is because when importing, the shipper needs to declare a value for insurance purposes. So, the shipping invoice will declare the item as gift and at €1.00 value.

But a lot of European companies will refuse to do this as it is unethical.

So does that mean our insurance value is only worth 1 Euro ? That's quite risky if there's a misfortune happens

[ViiiLaix]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

I have read from another forum, what they usually do is wear the new watch on the wrist, shipped back the box, then you pandai pandai hide the receipt with you.

[CKL1213]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

SURE KENA. YOU WILL BE GIVEN A CUSTOM FORM TO DECLARE WHEN COMING IN. IF YOU DECLARE NO DUTIABLE ITEM BUT CHECK AND FOUND BY THEM WHEN PASSING WILL ALSO KENA PENALTY

ASK THE AD OVERSEAS TO COURIER BACK THE BOX FOR YOU. AND YOU WEAR YOUR WATCH COMING IN.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

SAME THING SEND THE BOX WEAR TWO WATCHES ONE ON THE RIGHT AND ONE ON THE LEFT CANNOT MEH

Thanks yoda, good idea, I think same goes to handbag, shoes and etc, all bag and boxes courier back 

So if I throw all receipts, this mean custom won't charge me since they can't prove that all my watch, shoes, clothes, bag and etc are bought from oversea right?

[jefflwc]

Not so simple. They can use their 'estimated' market price for your goods to tax you. And more often than not, their prices are definitely more expensive

[Everdying]

about GST, say if u use EMS, then when reaches here usually should be handled by poslaju.
but will poslaju pay the GST for u first,  or do u have to go customs and pay? so relieving poslaju of their job?

[Yoda]

about GST, say if u use EMS, then when reaches here usually should be handled by poslaju.
but will poslaju pay the GST for u first,  or do u have to go customs and pay? so relieving poslaju of their job?

I am not from Custom but common sense tell me that Poslaju will collect from you at your house before pass the delivery to you for small package or value.

For big package or high value item you will have to go to Poslaju warehouse where the custom office is also station at the same building.

[kenji1903]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

is it a random pick? i bought 1 back 1.5 years ago but was lucky cos nobody bothered to stop me at KLIA

hopefully the "lazy" culture will continue after the start of GST else everyone will need to stay overnight at the Customs!

[Yoda]

Two scenario, will I subject to GST?

1) go oversea without wearing watch, bought one and put on wrist when back to Malaysia, box inside bag found by custom but watch on wrist.

2) go oversea wearing a watch, bought another one and put on wrist, put the old watch inside the watch box, when back to Malaysia, custom found watch inside box however watch is old, box is new, new watch on wrist.

is it a random pick? i bought 1 back 1.5 years ago but was lucky cos nobody bothered to stop me at KLIA

hopefully the "lazy" culture will continue after the start of GST else everyone will need to stay overnight at the Customs!

The overseas system can work so I believe they will introduce here. They will give you a self declaration custom form. But they will only random check. If you are lucky when check when you did not declare you will get hefty penalty. So naturally all will comply to avoid the risk of hefty penalty.