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Holidaying Back, pls pay GST

Ktglfc

By Ktglfc,
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Hypersonic

Ok...

Last month, my wife bought a luggage from oversea website. About$500. Came in, no need to pay GST.

But yesterday, we received another cabin luggage, bought from the same site, same brand but cheaper...

Kena pay GST.

 

so my wife very angry.....

[laugh]

Aiya... Then tell your wife to go pay GST for the first luggage lor then no need to be angry. 😄😄

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Eyke

Eyke

Supercharged

If I buy a bag $1800 and I got 3 person, is that mean I don't need to pay GST?

Cos I person is $600 mah.

don't need... if you just cut your bag into 3 pieces and distribute.

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Mustank

Mustank

Hypersonic
(edited)

http://blog.moneysmart.sg/travel/sneaky-tactics-to-avoid-paying-gst-for-your-overseas-purchases/

 

Sneaky Tactics to Avoid Paying GST For Your Overseas Purchases

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I don’t know about you, but whenever someone reminds me constantly about things I already know – I get a little annoyed. But when the government reminds me to pay GST on my overseas purchases after coming back from a well-deserved vacation – the plain-clothed anti-terrorist commando in me just wants to scream out in rage!

No, I’m not saying you need to act like a jerk at the airport and get yourself arrested just because you refuse to pay GST on your hard-earned purchases. What I’m saying is this – there’s a better way to avoid the “Welcome Back! Pay Your GST Now!” trap once you come back from holiday.

So How Much GST Would I Have to Pay?

According to Singapore Customs, if your holiday takes you away from Singapore for more than 48 hours, you’ll need to pay 7% GST on any holiday purchases exceeding S$600.

And if you’re only taking a mini-vacation this holiday season lasting less than 48 hours, you’ll need to pay 7% GST on any holiday purchases exceeding S$150.

So, if you come back to Singapore with a new iMac, iPad Mini, a pair of LV bags, and a trio of Furbies (because your grandma and nieces love those adorable, but slightly creepy toys) – that 7% GST means you’ll need to pay over $250!

Also, if you bring back any of the following, you’ll need to pay GST no matter what:

  • Liquor
  • Tobacco Products
  • Petroleum
  • Goods imported for resale (another overhead for running a blog shop)

But there are ways you can…er, bypass GST when you come back… not that I urge you to any particular course of action. Here’s how you can do that:

 

1. Take It Out of The Package

 

 

If you purchase some (I don’t mean a suitcase full!) fancy new electronics or luxury goods overseas and don’t take them out of their original packaging, you might as well get a giant TAX ME tattoo on your forehead.

Nothing makes a customs officer raise the question “have you paid GST on this?” faster than an obviously EXPENSIVE item that’s either still in its packaging or has its price tag dangling out.

So what can you do?

Simple – make that new purchase look like you didn’t just buy it in Paris or New York a few days ago. Take it out of its packaging, rip all price tags off, and if you can “use” it immediately, do so. That means doing the following:

  • If you bought a new laptop or tablet, put it in an older or cheap looking laptop bag and not the “factory” bag it may have came with.
  • If you bought a luxury item (bag, watch, jewelry, etc.) wear it!
  • If you bought expensive designer clothing, just make sure you pull off all the price tags.

 

2. Buy Your Apple Products in… Malaysia!?!

Ok, this one’s for the Apple fanatics out there. I’ve had a lot of friends who have purchased Apple products while on holiday in the U.S. because they thought it would be cheaper.

Compared to Singapore, it is cheaper, but with sales tax (varies according to the state you visit), it’s actually about the same price or even more expensive by comparison.

So this might come as a shocker, but the cheapest Apple products anywhere are in Malaysia. In fact, if you want to buy the latest iPad, Malaysia is the cheapest place in the world to get it.

Of course, if you’re heading to Malaysia for a day trip to buy an Apple product you need to watch out for 2 things if you want to bypass paying GST:

  1. You can either just follow point #1 above and make sure you discard the packaging; or
  2. You can stay in Malaysia for longer than 48 hours to take advantage of the $600 GST “relief” if your purchase is lower than that amount.

 

3. That’s What Friends Are For…

Who doesn’t buy gifts for friends and family when on holiday? Of course, sometimes those gifts happen to be rather expensive, like laptops and tablets.

Let’s say that you travelled to the U.S. on holiday with some friends and you bought a brand new iMac and bought two iPads for your siblings – once you get home, chances are damn good that you’ll have to pay GST on those purchases.

But if you “gift” those iPads to your friends who traveled with you before hitting customs, it’ll look like you and your friends each bought one! Just make sure your “friends” are nice enough to “gift” those devices back to you once you’re all in the taxi home. That should help you bypass the GST expense.

After all, a gift is a gift right?

 

Some Final Advice – Don’t Be an Idiot!

Remember, it’s one thing to come back with a couple of expensive items that are for your own personal use, but it’s another thing entirely to return with [sly]a suitcase full of luxury bags [sly], expensive TCM ingredients (tiger penis anyone?) or electronics.

If you try to do that and Singapore Customs catches you – you’re in for a world of pain.

 

 

like this? [grin]

bag02-211214e.jpg

 

You’ll either have to pay a fine of $10,000 or 20X the amount of the duty/GST. Even worse, you might end up staying at Changi Prison for up to 3 years.

So be sensible. If you make a ton of expensive purchases overseas and come back with suitcases full of pricey merchandise – you can probably afford to pay the 7% GST that comes with them. We’ll be taking a look subsequently at how to make the most of your overseas spending with the right credit cards so stay tuned with us on Facebook, or head on down to MoneySmart if you’re looking for the right credit card for your holiday soon.

 

Do you have any other GST tricks that you’ve found out? We’d be grateful if you shared them here!

Image Credits:
ratnadella, kaysha

 

Edited by Mustank
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Goldbug

Goldbug

6th Gear

These r the NCNL type.

 

Btw, I observe spike in luxury gds bfore festive occasion.

 

Generally, man like new car, woman like new handbag, shoe. Come CNY, u c Ah Mui Ah Prata Ah Chantell Ah Blurberry Ah Buay Tehkor appearing @ gathering n being carried by mannequins.

 

I ever see one char boh park her clk by the side road of Liat towers, and get her kaki to feel the boot with bags of Hermes products

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Qpik

Qpik

Supercharged

don't need... if you just cut your bag into 3 pieces and distribute.

Bestest solution so far...

 

Got one for u...

 

Don't buy luxury good, can put to better use n don't hv to worry abt GST

 

I ever see one char boh park her clk by the side road of Liat towers, and get her kaki to feel the boot with bags of Hermes products

Haiz..buy so many @ the end of the day...."empty come, empty go"

 

But if she put all her branded bag n incinerate with her that is another matter altogether.

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Zenithpool

Zenithpool

2nd Gear

I had a colleagues went Europe for holiday, all lompang her to buy bags and she come back and declare GST at airport of >$200+. After add 7%, they still found it worth considering the price diff and newer model. For such situation, not worth to hiong

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Civic6228

Civic6228

6th Gear

Ok...

Last month, my wife bought a luggage from oversea website. About$500. Came in, no need to pay GST.

But yesterday, we received another cabin luggage, bought from the same site, same brand but cheaper...

Kena pay GST.

 

so my wife very angry.....

[laugh]

 

There is allowance of $600 worth of goods ... less than $500 .... no tax lah. Unless you are talking about everything thing that you have shopped and bringing them back.

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Kusje

Kusje

Supersonic

 

There is allowance of $600 worth of goods ... less than $500 .... no tax lah. Unless you are talking about everything thing that you have shopped and bringing them back.

Sounds like he purchased it online.

 

The allowance for GST for such purchases is SGD 400 (including shipping costs). If total amount above 400 SGD, entire purchase gotta pay GST.

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Mustank

Mustank

Hypersonic

I had a colleagues went Europe for holiday, all lompang her to buy bags and she come back and declare GST at airport of >$200+. After add 7%, they still found it worth considering the price diff and newer model. For such situation, not worth to hiong

 

if bag girl pay gst, her lobang wont picha

now gst lobang picha liao, soon iras and acra will come along with the income tax stick and business registration stick

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Kac

Kac

4th Gear

 

if bag girl pay gst, her lobang wont picha

now gst lobang picha liao, soon iras and acra will come along with the income tax stick and business registration stick

Live by the sword, die by the sword...

 

Seriously, if its (bags) only really for personal use, Customs will probably close 1 eye..But if you intend to make it into something money making without paying the taxman, I'm sure they will step in.

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Mustank

Mustank

Hypersonic

Live by the sword, die by the sword...

 

Seriously, if its (bags) only really for personal use, Customs will probably close 1 eye..But if you intend to make it into something money making without paying the taxman, I'm sure they will step in.

That's why Cheong gong the computer mah [sly]

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Icedbs

Icedbs

Turbocharged

These r the NCNL type.

 

Btw, I observe spike in luxury gds bfore festive occasion.

 

Generally, man like new car, woman like new handbag, shoe. Come CNY, u c Ah Mui Ah Prata Ah Chantell Ah Blurberry Ah Buay Tehkor appearing @ gathering n being carried by mannequins.

 

Perhaps because there are always sales & promo at year end which coincides with year end bonus as well

 

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Goldbug

Goldbug

6th Gear

Bestest solution so far...

 

Got one for u...

 

Don't buy luxury good, can put to better use n don't hv to worry abt GST

 

Haiz..buy so many @ the end of the day...."empty come, empty go"

 

But if she put all her branded bag n incinerate with her that is another matter altogether.

 

skali in the will realli ask the relatives to burn the bags as offerings to her?

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Ktglfc

Ktglfc

Hypersonic
  • Author

If wanna buy, just be prepared to pay ...

Don't try to cheat garmen, cos will pay back in multiples to garmen coffers :D

We all know this :D

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Vid

Vid

Hypersonic

If wanna buy, just be prepared to pay ...

Don't try to cheat garmen, cos will pay back in multiples to garmen coffers :D

We all know this :D

No lah. Just have to be smart when buying things.

 

Buy watch, wear watch.

Buy bag, use bag.

Buy clothes, wear clothes.

 

Of course if buy too many, then no choice, got to pay.

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