Malaysia Watch Forum

Main Forums => General Discussion - Modern Watches => Topic started by: echoesian on December 13, 2014, 01:48:40 PM

Title: Would the watches be more expensive next year after the GST implementation?
Post by: echoesian on December 13, 2014, 01:48:40 PM
AFAIK the watches is duty free in Malaysia for now. After GST is implemented next year, would it impact the cost of the watches?
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: 2ndOpinion on December 13, 2014, 01:55:55 PM
For sure. Watches are not GST exempt.

But the real killer is the fast weakening RM. Expect new stock prices to hit the roof.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: hidden830726 on December 13, 2014, 03:44:27 PM
Yes, at least we know now buying from oversea will cost us more
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: amir1218 on December 14, 2014, 05:52:03 PM
Definitely prices will go up by at least 6%..
Best to get the watch you want in Feb or Mar 2015. Unless brands start raising prices before that.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Everdying on December 14, 2014, 06:03:09 PM
GST only affects watches bought in stores locally right?
if we buy privately from overseas, will we get hit also by GST?
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: axaxax on December 14, 2014, 09:21:21 PM
GST only affects watches bought in stores locally right?
if we buy privately from overseas, will we get hit also by GST?

you wont need to pay the 6%. but RM weaken nearly 10% to the dollar. so either way, you are screwed.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Boeing on December 15, 2014, 02:57:43 AM
Buy in Japan cause yen is cheap now, plus minus tax for foreigners  :thumbsup:
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Timeless on December 15, 2014, 07:05:08 AM
Some brands of the prices are cheap at HK, it's advisible to hunt at there
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: shwn31 on December 15, 2014, 10:53:33 AM
I think we might need to stop buying watches for a while. Haha
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Shinka on December 28, 2014, 09:13:51 PM
I went around to a few ADs while searching for my next target, asked around and many could not confirm whether prices of all watches will go up due to the GST.

They could however confirm that Audemars Piguet prices will be up in Jan 2015.

Is this like a 100% sure thing that prices of watches will go up after April? Or do you think ADs will absorb the GST in order to keep demand?

I think the whole GST thing needs some time to settle down, including businesses registering, etc so it may really take some time to include the GST in the prices of watches.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Everdying on December 28, 2014, 09:45:42 PM
isnt GST added on top of the price of the watch?
which means the SRP of watches isnt affected and technically the AD profits are also not affected (unless of cos ppl choose to buy less rather than give the govt the 6%).
so i doubt any AD would want to offer more discounts just to offset the extra 6% that the govt takes.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Shinka on December 29, 2014, 07:56:00 AM
So you mean its a 100% certainty that prices of watches will go up by 6%?

You guys gonna get anything before April?

Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: james on December 29, 2014, 08:44:20 AM
next time better buy in singapore airport  :o
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: kygan711 on December 29, 2014, 10:03:16 AM
Yes 6% on top of selling price. Same for all other purchase we make in our daily life unless the shop is

1) below 500K revenue per annum then they dont need to charge purchase 6%
2) Exempted Product/ Services approved by Government which at the moment is some medication,basic food  and tolls I was told. Still very fuzzy like always from our government.

So if you go and buy from a very small turnover watch shop which is below 500K he can opt not to charge you the 6%.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: kygan711 on December 29, 2014, 10:10:31 AM
I went around to a few ADs while searching for my next target, asked around and many could not confirm whether prices of all watches will go up due to the GST.

They could however confirm that Audemars Piguet prices will be up in Jan 2015.

Is this like a 100% sure thing that prices of watches will go up after April? Or do you think ADs will absorb the GST in order to keep demand?

I think the whole GST thing needs some time to settle down, including businesses registering, etc so it may really take some time to include the GST in the prices of watches.

The business registration for GST must be done before 31 Dec. Afterwhich I think there is a 10 or 20K penalty will be imposed to those who don't.

The GST will need to set in effective 1st April for everyone who meets the qualification to impose the GST for their new billing and GST is a separate line by itself.  Cannot be lumped up or combined because this single line with the amount indicated is what we need to pay to custom department quarterly which they will use as their documentation for collection. You can play with you selling price if you like but 6% is on the selling price on the bill.

 So no one can delay. if they delay technically there have flout the law and penalty can set in later when they are audited.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Shinka on December 29, 2014, 01:20:20 PM
I went around to a few ADs while searching for my next target, asked around and many could not confirm whether prices of all watches will go up due to the GST.

They could however confirm that Audemars Piguet prices will be up in Jan 2015.

Is this like a 100% sure thing that prices of watches will go up after April? Or do you think ADs will absorb the GST in order to keep demand?

I think the whole GST thing needs some time to settle down, including businesses registering, etc so it may really take some time to include the GST in the prices of watches.

The business registration for GST must be done before 31 Dec. Afterwhich I think there is a 10 or 20K penalty will be imposed to those who don't.

The GST will need to set in effective 1st April for everyone who meets the qualification to impose the GST for their new billing and GST is a separate line by itself.  Cannot be lumped up or combined because this single line with the amount indicated is what we need to pay to custom department quarterly which they will use as their documentation for collection. You can play with you selling price if you like but 6% is on the selling price on the bill.

 So no one can delay. if they delay technically there have flout the law and penalty can set in later when they are audited.

Good clarification. In that case, I'm sure many watch enthusiasts here will be rushing to purchase their desired watches before April as 6% is indeed quite significant.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Narco on January 04, 2015, 05:23:28 AM
Went to a few ADs which the last one was a Longines in Ipoh. All told me the same. Next year (they mean this year 2015), price will be up another 5-10% plus GST. Better buy now they said.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: kygan711 on January 04, 2015, 07:10:12 PM
Well you be lucky if they havent increase price now.
Why  ? Cause our rate to USD have tanked ! So this would already pushed up their cost since most of the watches are from abroard.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Gigi on January 04, 2015, 08:43:58 PM
Hmmm local price will increase as they take into account of the GST into the price. Not to mention the RM value going down which make the option buying overseas not viable (even after deduct the overseas VAT)

So better buy now before the GST and keep the change when the rainy day come  ;)
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: Yoda on January 14, 2015, 07:09:39 AM
In other countries with VAT I know that what they do when they came back from overseas they will wear the watch and the box will be courier back into their country.

 :o
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: ericys on February 27, 2015, 10:30:45 AM
Hi all, I have a nagging question at the back of my head, does the GST implementation applies to purchasing used watches via online websites and second hand shops?
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: ck77 on February 27, 2015, 10:38:32 AM
Hi all, I have a nagging question at the back of my head, does the GST implementation applies to purchasing used watches via online websites and second hand shops?
Yes definately.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: kygan711 on February 27, 2015, 08:12:33 PM
So long the person/ company who issues you the bill is based and selling to a buyer in Malaysia with more than 500K revenue per year they will need to charge you GST.

You want to buy a watch and dont want to pay GST ? Look for a watch seller who is below 500K revenue per year if you can find this combination.
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: kingpin on February 28, 2015, 05:01:21 PM
Buying the pre-owned watch with the owner himself will not be any GST at all.  :Cheers:
Title: Re: Would the watches be more expensive next year after the GST implementation?
Post by: hidden830726 on February 28, 2015, 08:48:42 PM
Off course i hope it will not be the case. Maybe we will get free gifts and stuffs in return  :Laughing_on_floor: