Customs Tax/Duty problems using Youshop

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Customs Tax/Duty problems using Youshop

1 | 2 | 3

87 posts

Master Geek
+1 received by user: 4

#787231 26-Mar-2013 13:59

bazzer: The thing is that you're still liable for GST on the total cost including shipping (less any GST already paid I suppose, i.e. the bank fee or youshop's postage, I'm not sure there's any GST on either of those).

Regardless of what mistake youshop made, the total cost is over $400 so GST is over $60 so you need to pay it.

If sleemanj is correct, then the total cost minus the bank fee is under $400 so gst would be slightly under $60 as a result.

bazzer

3438 posts

Uber Geek
+1 received by user: 267

Trusted

#787267 26-Mar-2013 14:41

Etcman:
bazzer: The thing is that you're still liable for GST on the total cost including shipping (less any GST already paid I suppose, i.e. the bank fee or youshop's postage, I'm not sure there's any GST on either of those).

Regardless of what mistake youshop made, the total cost is over $400 so GST is over $60 so you need to pay it.

If sleemanj is correct, then the total cost minus the bank fee is under $400 so gst would be slightly under $60 as a result.

I agree with you, if he's right (and I have no reason to think he is not) but good luck getting any kind of refund from Customs for it. I think she may just have to suck it up and take it as a learning experience. Would you be able to have the same argument if the bank didn't charge the fee and "hid" it within the exchange rate (such as paypal do)? I suspect not.

Anyway, I guess these kind of borderline cases highlight potential dangers when calculating potential savings.

I was considering trying this myself, but this is giving me second thoughts. I'd be tempted to declare the value of the item incorrectly (i.e. actual cost * USD/NZD) knowing that youshop will likely miscalculate and enter the declared value as declared value * NZD/USD thereby giving actually the correct declared value! ;)

Etcman

87 posts

Master Geek
+1 received by user: 4

#787272 26-Mar-2013 14:48

bazzer:
Etcman:
bazzer: The thing is that you're still liable for GST on the total cost including shipping (less any GST althe ready paid I suppose, i.e. the bank fee or youshop's postage, I'm not sure there's any GST on either of those).

Regardless of what mistake youshop made, the total cost is over $400 so GST is over $60 so you need to pay it.

If sleemanj is correct, then the total cost minus the bank fee is under $400 so gst would be slightly under $60 as a result.

I agree with you, if he's right (and I have no reason to think he is not) but good luck getting any kind of refund from Customs for it. I think she may just have to suck it up and take it as a learning experience. Would you be able to have the same argument if the bank didn't charge the fee and "hid" it within the exchange rate (such as paypal do)? I suspect not.

Anyway, I guess these kind of borderline cases highlight potential dangers when calculating potential savings.

I was considering trying this myself, but this is giving me second thoughts. I'd be tempted to declare the value of the item incorrectly (i.e. actual cost * USD/NZD) knowing that youshop will likely miscalculate and enter the declared value as declared value * NZD/USD thereby giving actually the correct declared value! ;)

Interestingly enough, i ordered one myself and it was declared correctly. I also followed the nexus 4 shipping thread here on geekzone and this is the first case of incorrect declaration ive seen.

Its also sad if we have to break the law and incorrectly declare to correct their mistakes

bazzer

3438 posts

Uber Geek
+1 received by user: 267

Trusted

#787278 26-Mar-2013 14:57

Etcman:
bazzer:
Etcman:
bazzer: The thing is that you're still liable for GST on the total cost including shipping (less any GST althe ready paid I suppose, i.e. the bank fee or youshop's postage, I'm not sure there's any GST on either of those).

Regardless of what mistake youshop made, the total cost is over $400 so GST is over $60 so you need to pay it.

If sleemanj is correct, then the total cost minus the bank fee is under $400 so gst would be slightly under $60 as a result.

I agree with you, if he's right (and I have no reason to think he is not) but good luck getting any kind of refund from Customs for it. I think she may just have to suck it up and take it as a learning experience. Would you be able to have the same argument if the bank didn't charge the fee and "hid" it within the exchange rate (such as paypal do)? I suspect not.

Anyway, I guess these kind of borderline cases highlight potential dangers when calculating potential savings.

I was considering trying this myself, but this is giving me second thoughts. I'd be tempted to declare the value of the item incorrectly (i.e. actual cost * USD/NZD) knowing that youshop will likely miscalculate and enter the declared value as declared value * NZD/USD thereby giving actually the correct declared value! ;)

Interestingly enough, i ordered one myself and it was declared correctly. I also followed the nexus 4 shipping thread here on geekzone and this is the first case of incorrect declaration ive seen.

Its also sad if we have to break the law and incorrectly declare to correct their mistakes

The way I see it, as long as the value on the customs declaration is correct, no laws are broken.

BigMal

998 posts

Ultimate Geek
+1 received by user: 160

ID Verified

Trusted

#787451 26-Mar-2013 20:15

Etcman:
BigMal: When you order a Nexus 4 via youshop you have to declare the value in USD. Did she write USD$299 or USD $358?

She wrote USD $299. Youshop messed up and typed $358 USD. The form on youshop asks for the value of the package in USD so there shouldn't be any confusion.

When you log into youshop you can see completed orders which also displays that amount you declared. Lay your complaint with nzpost showing the declared amount in youshop ($299) compared to the amount on the postage label ($358).

Etcman

87 posts

Master Geek
+1 received by user: 4

#787454 26-Mar-2013 20:18

BigMal:
Etcman:
BigMal: When you order a Nexus 4 via youshop you have to declare the value in USD. Did she write USD$299 or USD $358?

She wrote USD $299. Youshop messed up and typed $358 USD. The form on youshop asks for the value of the package in USD so there shouldn't be any confusion.

When you log into youshop you can see completed orders which also displays that amount you declared. Lay your complaint with nzpost showing the declared amount in youshop ($299) compared to the amount on the postage label ($358).

Package will probably arrive tomorrow as it was released from customs today after yesterday's payment. Will add that to the complaint I suppose.

Geekzone

Want to support Geekzone and browse the site without the ads? Subscribe to Geekzone now (monthly, annual and lifetime options).

mattgreen

133 posts

Master Geek
+1 received by user: 6

#787636 27-Mar-2013 00:07

sbiddle:
gregmcc:
Here is a free tip, use paypal (if possible) for overseas credit card purchases, paypal charge you credit card in $NZ so you avoid the greedy bank conversion fees

Here's another tip - avoid Paypal's currency conversion at all costs. Their conversion rates are an absolute ripoff.

Last time I compared them the PayPal conversion rates were worse than the bank, but the bank fees they add after the conversion left you even worse off. ASB's offshore margin fee is >2% on the converted NZD value.

Net result was PayPal was cheaper and you knew the exact price at the time you pay. YMMV with your Bank/Visa/MC combo and the currency involved.

mattwnz

20520 posts

Uber Geek
+1 received by user: 4797

#787639 27-Mar-2013 00:42

sleemanj: Somebody was complaining about similar on the Trademe forums recently, seems Youshop have a habit of calculating $XX USD to $YY NZD but writing on the package $YY USD; then of course customs does $YY USD to $ZZ NZD when it enters NZ - double conversion.

If that is what has happened, then it appears the fault could be with youshop, as they have place the wrong amount, or the wrong currency on the package. I would contact NZ post about it if you are having trouble with youshop.

Etcman

87 posts

Master Geek
+1 received by user: 4

#787640 27-Mar-2013 00:52

mattwnz:
sleemanj: Somebody was complaining about similar on the Trademe forums recently, seems Youshop have a habit of calculating $XX USD to $YY NZD but writing on the package $YY USD; then of course customs does $YY USD to $ZZ NZD when it enters NZ - double conversion.

If that is what has happened, then it appears the fault could be with youshop, as they have place the wrong amount, or the wrong currency on the package. I would contact NZ post about it if you are having trouble with youshop.

They would just tell you to contact customs as after the package arrives in New Zealand, only they can deal with it.

mattwnz

20520 posts

Uber Geek
+1 received by user: 4797

#787641 27-Mar-2013 01:02

Etcman:
mattwnz:
sleemanj: Somebody was complaining about similar on the Trademe forums recently, seems Youshop have a habit of calculating $XX USD to $YY NZD but writing on the package $YY USD; then of course customs does $YY USD to $ZZ NZD when it enters NZ - double conversion.

If that is what has happened, then it appears the fault could be with youshop, as they have place the wrong amount, or the wrong currency on the package. I would contact NZ post about it if you are having trouble with youshop.

They would just tell you to contact customs as after the package arrives in New Zealand, only they can deal with it.

Yeap, but if youshop have made an error, you should be able to go back to them for compensation, or they should handle it for you with customs due to their error. From what you have said, Youshop would be the only ones that could prove that the amount they have put on the box is wrong.

Etcman

87 posts

Master Geek
+1 received by user: 4

#787643 27-Mar-2013 01:08

mattwnz:
Etcman:
mattwnz:
sleemanj: Somebody was complaining about similar on the Trademe forums recently, seems Youshop have a habit of calculating $XX USD to $YY NZD but writing on the package $YY USD; then of course customs does $YY USD to $ZZ NZD when it enters NZ - double conversion.

If that is what has happened, then it appears the fault could be with youshop, as they have place the wrong amount, or the wrong currency on the package. I would contact NZ post about it if you are having trouble with youshop.

They would just tell you to contact customs as after the package arrives in New Zealand, only they can deal with it.

Yeap, but if youshop have made an error, you should be able to go back to them for compensation, or they should handle it for you with customs due to their error. From what you have said, Youshop would be the only ones that could prove that the amount they have put on the box is wrong.

I don't think it's within their power to correct their mistake with customs. Instead, they get you to personally correct it with your receipts and credit card statements. Sadly, this does not accurately reflect the value of the parcel itself and is what caused this problem in the first place.

My sister actually called up her bank and was told that currency conversion can't be taxed and that this is a valid point to argue. Customs should only be taking into account the actual value of the parcel and not what is printed on the statement as banks all use different conversion rates with different fees so it is not an accurate representation.

Dyson

Shop now for Dyson appliances (affiliate link).

gkjb

128 posts

Master Geek
+1 received by user: 9

#787683 27-Mar-2013 09:28

Correcting an error with Customs isn't of concern. They have an obligation to correct the wrong done to the customer they entered into a contract with.

Publius

276 posts

Ultimate Geek
+1 received by user: 27

#787731 27-Mar-2013 11:09

Remember too that customs use their own published USD->NZD conversion rate, not the rate you paid, to determine the NZD value of goods/shipping.

khull

1245 posts

Uber Geek
+1 received by user: 133

#787819 27-Mar-2013 12:18

As a personal observation from using couriers/forwarders and customs is the entire value INCLUDING shipping is always used as part of determining the amount of tax collected. Has always been for me.

Whether that is the correct method applied is a different story.

Geektastic

18009 posts

Uber Geek
+1 received by user: 8465

Trusted

Lifetime subscriber

#787844 27-Mar-2013 12:32

I have never quite worked out why you should pay tax on the shipping - that has always struck me as a bit odd.

Does it happen if a relative overseas sends you a gift worth say $1000? Or just in commercial transactions?

1 | 2 | 3