purchase gear from oversea?

[skyliner34]

Hi Guys

 

Can i ask about  some experience to purchase gear from oversea. when i saw the product on their official website is much cheaper then local store.

 

for example like woo audio wa 2 official site is cost $1299 US ( around $1650) included shipping. but A2A is selling $2100. i mean thats a big difference.

is it any hidden cost if purchase from oversea? or do i need to pay tax when the product get in?

 

please give some advise  thanks. 

[audiofeline]

There have been some discussion threads on SNA relatively recently that have explored this issue.  My recollection is that when you factor exchange rates, shipping and insurance, GST, etc. the price doesn't come out much cheaper.  Plus you won't get local warranty, so you will need to reship overseas if there are problems or pay for repairs here. 

[Guest niterida]

Yep what @audiofeline said

 

You legally must pay GST on the cost of the item and ALL other fees - shipping, packaging, agents fees etc etc. However it depends on whether customs actually intercept the package - it is a risk you take if you don't declare/pay the GST.

 

And not only will you have no warranty you won't even get any information out of the local distributor - the first thing they ask for is a serial number and when it is not in their system they won;t help you.

 

So it depends on how much you are saving to determine if it is worthwhile or not. I would say you really need to get it for less than half price - that way if it fails you can always buy another one and still have paid less than  full Australian price. But if you are saving any less then (depending on the item) it probably isn't worth it. Plus buying locally you are keeping Australian businesses going and keeping Australian money in Australia.

[Stump]

Looking at the price difference you are better off buying local.

[skyliner34]

Thanks for the reply guys. i am consider to get the wa2. they have free shipping worldwide ATM. its a bit temping. i was try to look for second hand in the forum  for a while but dont have the luck.

 

I just wondering if i purchase from the official site and they ship to me. how would GST in get involved  the government will send me a letter? or hold up the item in customs？

 

I love to support local businesses. but its really a big difference on the pricing, is like 30% extra

[sakabatou]

If you are open to buying an ex-demo, it could be worthwhile calling A2A and asking for a price.

[A.K.]

Apart from all things mentioned above, the person to person contact, advice and demonstration should count for something in my opinion.

 

Besides, when dealing with a local store, it's more than likely you will get a 10% discount on the RRP. Also, from an ethical point of view, I feel we need to support our local HIFI shops (if the price difference is not that great).  I find it great to be able to listen to a product before purchase, even take one there (that you own), for direct evaluation of the sound with the new one.

Personally, I buy o/seas only when something is not available here.

And,

as far as I know, GST is payable to imports, depending on their price.  There is a threshold there but I can't remember what it is.  A quick search at Aus. Customs will tell you.

Edited March 16, 2021 by A.K.

[Stump]

41 minutes ago, skyliner34 said:

Thanks for the reply guys. i am consider to get the wa2. they have free shipping worldwide ATM. its a bit temping. i was try to look for second hand in the forum  for a while but dont have the luck.

 

I just wondering if i purchase from the official site and they ship to me. how would GST in get involved  the government will send me a letter? or hold up the item in customs？

 

I love to support local businesses. but its really a big difference on the pricing, is like 30% extra

Just done some figures and you will save $150 Au delivered. You will loose that at resale as a grey import.

[skyliner34]

i will give A2A a call see what they can do. Thanks

[Stump]

11 minutes ago, Arthur K said:

 There is a threshold there but I can't remember what it is.  A quick search at Aus. Customs will tell you.

Up to $1000 threshold...

[Batty]

6 minutes ago, Stump said:

Up to $1000 threshold...

Wasn't the threshold done away with and we now pay GST on all import purchases thanks mostly to Mr. Norman.

[pwstereo]

1 minute ago, Batty said:

Wasn't the threshold done away with and we now pay GST on all import purchases thanks mostly to Mr. Norman.

Mr Harvey, yes, thanks for that and the owned LNP.

[Stump]

15 minutes ago, Batty said:

Wasn't the threshold done away with and we now pay GST on all import purchases thanks mostly to Mr. Norman.

Not on the last few times I have imported.I have a package coming in from New Zealand next week   $850 declared and I will not pay GST.  Buying from Ebay and Amazon GST is taken out at purchase.

 

 

Taxable supplies and low value imported goods

Sales of goods that are to be imported into Australia that have a customs value at or below $1,000 can be non-taxable importations

 

Edited March 16, 2021 by Stump

[audiofeline]

Another thing about buying overseas is that the device's voltage may not suit Aust.  Many devices will come with adjustable transformers, so it's not the problem it once was, but you can be caught. 

 

I've been caught in a similar way with some small non-hifi devices.  The wallwart that comes with the item often has a non-Aust. plug.  So I pay postage on a heavy wallwart that can't be used, and need to factor buying a replacement locally.  The cheap OS purchase starts to get expensive. 

[Ehrmantraut]

There are practical and ethical issues here. I won't address the ethical ones. We all know that there have been past practices in the AUS retail market that adds an "Australian" tax. There are now many examples where the AUS retail price is lower than practically anywhere else as we have such a competitive market. Unfortunately, in HiFi that is rarely the case. OS prices, particularly for "open box" can be very tempting. As mentioned, there are a number of factors to consider with warranty etc. I enclose a website that calculates the GST/Tax for imports.

https://www.wwcf.com.au/customs-duty-import-goods-and-service-tax-calculator/

For  example with Woo and Schiit Audio, the US std retail (without any discount) + shipping looks very competitive. Local retailers tell me that there are very low margins for them with these and other manufacturers. Getting demo or B stock makes it worth the risk IMO. Bear in mind that some US sellers use USPS, a terrible shipping service. Imagine way worse than AusPost. FedEx and DHL will get you to pay customs and tax based on the "value" of the item. Some sellers will state this accordingly. Buying from the manufacturer can get you the most updated version of the device, whereas in AUS, stock levels may mean you get V1 vs V2 from OS. 

YMMV and it's all about your risk appetite.

[Saxe]

Yep, it is all about risk. I have bought some vintage gear OS that I could not source in Australia and luckily have had no serious issues. Buying OS can be a hastle and with all the added fees is not necessarily cost effective. 

 

[075Congo]

Just purchased a pair of ATLAS CABLES Hyper DD XLR's (.75m) and a 3 metre pair of ATLAS CABLES Hyper 3.5 Loudspeaker cables from Future Shop UK. Had them sent using ROYAL MAIL (with Tracking) for 20 pounds. Took 7 days to arrive here safely and once you deduct VAT from the price I was way under any local price. Could have gone for DHL Courier but at 44 pounds sterling I went cheap. Because of COVID the order was processed at the Factory in Scotland*. Apparently the factory has closed so all the ATLAS CABLES are made in the homes (kitchen?) of the assembly people. Full International Warranty is included as well as up to 7 days Burn-In.

I accept the fact that I'm not buying local and thus am an Ar$#hole but I'll live with it. I saved $555.00 on this deal.

Cheers

[Guest niterida]

1 hour ago, Stump said:

Not on the last few times I have imported.I have a package coming in from New Zealand next week   $850 declared and I will not pay GST.  Buying from Ebay and Amazon GST is taken out at purchase.

 

 

Taxable supplies and low value imported goods

Sales of goods that are to be imported into Australia that have a customs value at or below $1,000 can be non-taxable importations

 

This is not quite true and seems to have been taken out of context.

All consumer goods purchased  overseas are now subject to GST regardless of values (although some exempt items are not subject to any GST)

But the stupid government have decided that for less than $1000 the overseas supplier is the one to pay the GST but only if they are registered for GST here in Oz - and apart from eBay which business is going to bother to do that ?? So if you buy something for less than $1000 you only pay GST if the supplier adds it to the price.

Over $1000 you must declare it and pay it when it arrives.

 

Edited March 16, 2021 by niterida

[MattyW]

I typically only buy from overseas only if the product is not available locally.... Sadly for pretty much all my gear that has meant buying from overseas. I always buy the product I want unless the price is more than I can justify to myself.....

 

For example I've some nice 1956 vintage Western Electric 111C 600:600 transformers wired with both RCA and XLR inputs and outputs, in a nice solid metal box on the way. I plan to see how they go between my passive preamp and Aleph-M power amp. Likewise even though expensive, these are sought after so I should always be able to move them on without it costing me too much. In fact in 10 years time they'll likely be worth more than I paid. Good luck finding that locally  

Edited March 16, 2021 by MattyW

[Guest Old Man Rubber]

4 hours ago, BlueOceanBoy said:

Bear in mind that some US sellers use USPS, a terrible shipping service. Imagine way worse than AusPost. FedEx and DHL will get you to pay customs and tax based on the "value" of the item. Some sellers will state this accordingly.

 

I would rather get 100 items shipped via USPS than have to deal with DHL - their customer service is about the rock bottom of all the shipping companies (FWIW I import/export low volumes of non-hifi related stuff commercially).  If you can't get it FedEx then don't buy it.

[Stump]

2 hours ago, niterida said:

This is not quite true and seems to have been taken out of context.

All consumer goods purchased  overseas are now subject to GST regardless of values (although some exempt items are not subject to any GST)

But the stupid government have decided that for less than $1000 the overseas supplier is the one to pay the GST but only if they are registered for GST here in Oz - and apart from eBay which business is going to bother to do that ?? So if you buy something for less than $1000 you only pay GST if the supplier adds it to the price.

Over $1000 you must declare it and pay it when it arrives.

 

Looks straight forward to me....But if you want to pay GST go ahead......

 

GST on low value imported goods

We understand that many businesses have been affected by COVID-19 and this may affect your ability to meet your Australian GST obligations. If you are experiencing difficulties at this time, get in contact with us so we can support you. See Offshore providers of low value goods and digital products.

Australian goods and services tax (GST) applies to sales of low value goods imported by consumers into Australia from 1 July 2018

Businesses that meet the registration threshold of A$75,000 will need to:

• register for GST
• charge GST on sales of low value imported goods (unless they are GST-free)
• lodge returns to the ATO.

These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.

This new law is designed so that businesses:

• will not charge GST on a sale when GST will be charged at the border, because an item is either 
  • worth over A$1,000
  • a tobacco product, or
  • an alcoholic beverage
   
• will not need to charge GST on a sale if it is clear that multiple goods will be shipped to Australia in one consignment worth over A$1,000 – GST will be charged at the border instead
• will not need to charge GST on a sale of low value imported goods to Australian GST-registered business if they provide their Australian business number (ABN) and confirmation that they are GST-registered.

Final guidance on currency conversion if sales aren't in Australian dollars

If your sales of low value imported goods into Australia are not in Australian dollars we have published guidance so you may determine:

• whether goods are low value goods (for example, to work out if the goods have a customs value of A$1,000 or less)
• the value of taxable supplies – as entities must report the GST payable on taxable supplies in Australian currency when lodging and paying GST.

 

[Guest niterida]

7 minutes ago, Stump said:

Looks straight forward to me....But if you want to pay GST go ahead......

 

GST on low value imported goods

We understand that many businesses have been affected by COVID-19 and this may affect your ability to meet your Australian GST obligations. If you are experiencing difficulties at this time, get in contact with us so we can support you. See Offshore providers of low value goods and digital products.

Australian goods and services tax (GST) applies to sales of low value goods imported by consumers into Australia from 1 July 2018

Businesses that meet the registration threshold of A$75,000 will need to:

• register for GST
• charge GST on sales of low value imported goods (unless they are GST-free)
• lodge returns to the ATO.

These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.

This new law is designed so that businesses:

• will not charge GST on a sale when GST will be charged at the border, because an item is either 
  • worth over A$1,000
  • a tobacco product, or
  • an alcoholic beverage
   
• will not need to charge GST on a sale if it is clear that multiple goods will be shipped to Australia in one consignment worth over A$1,000 – GST will be charged at the border instead
• will not need to charge GST on a sale of low value imported goods to Australian GST-registered business if they provide their Australian business number (ABN) and confirmation that they are GST-registered.

Final guidance on currency conversion if sales aren't in Australian dollars

If your sales of low value imported goods into Australia are not in Australian dollars we have published guidance so you may determine:

• whether goods are low value goods (for example, to work out if the goods have a customs value of A$1,000 or less)
• the value of taxable supplies – as entities must report the GST payable on taxable supplies in Australian currency when lodging and paying GST.

 

That is for businesses not personal imports

 

This is the personal one with my red highlighting for the important bit :

 

Overview

 

Things you buy over the internet will have the same rules, duties and screening processes applied as any other import.

You need to know that:

• For goods with a value of AUD1000 or less, there are generally no duties, taxes or charges to pay at the border.
  • However, From 1 July 2018, the Goods and Services Tax (GST) may be collected by overseas vendors of such low value goods when imported from overseas by consumers in Australia. GST will be charged at the point of sale and not at the border.
• For goods with a value over AUD1000, you will need to fill out an Import Declaration, and pay duties, taxes and charges at the border.

 

So basically if you don't get charged by the supplier then you don't pay it  - so in a way we are both right

Edited March 16, 2021 by niterida

[DT999]

In respect of GST I have purchased through Ebay and Discogs from overseas and both charge GST at point of sale, even on 2nd hand vinyl, that is since the change of rules in 2018. 

 

For new HiFi equipment I think it really depends on what you are purchasing. I have phono stages from the UK which I could have purchased directly from the manufacturer. But with postage and GST there really was no difference to the price from an Australian retailer. No brainer, buy local.

 

However I have bought interconnects and cartridges from overseas. These are light weight and shipping is not that expensive,  and I have saved between 30 and 60% in some cases on these. 

 

A couple of times I did have issues with the wrong item being delivered by two different overseas sellers. One sent me a prepaid return postage and mailed out the correct item same day, the other posted a new item and told me to keep the wrong one anyway. I have personally always had good customer service, but of course you have to factor in extended shipping times.

 

Not to say you won't have problems buying overseas, I'm sure there are plenty that have had issues and I have had long delays in delivery times, especially recently, but if you research the seller and look at reviews and feedback and especially if you buy through PayPal you can greatly reduce any risk, although not eliminate it.

 

But then I have also been burnt buying non HiFi items on line from Australian sellers on more than one occasion.

 

I will always look to buy locally first, then inter-state, but sometimes you can't get what you want or the cost just makes it unreasonable.

[betty boop]

On 15/03/2021 at 4:16 PM, skyliner34 said:

or example like woo audio wa 2 official site is cost $1299 US ( around $1650) included shipping. but A2A is selling $2100. i mean thats a big difference.

is it any hidden cost if purchase from oversea? or do i need to pay tax when the product get in?

definitely give A2A a call see what they can do on price... who pays RRP in au ? unless just hitting buy on the web...which many folk do. We have the fortune of buying local and asking for best price...something difficult to do for something from overseas. 

 

yes there are hidden costs and risks .... what can cop when lands here which can be GST and various duty and landing charges. basically can get a call ... its arrived we are holding it... pay X amount to release... worst case if the carrier is not doing everything then get a call from customs to lodge papers which is a pita ! 

 

then theres what happens if the thing is dead on arrival or damaged in some way... the lack of support or warranty locally. And yes resale on something thats a parallel or grey import is also not so good.

 

you are also not supporting local jobs of local retailer / importer etc by buying from someone overseas but we are now getting into ethics as someone quoted earlier...

[Southerly]

niterida - I bought an ex demo Pro-Ject CDP some years ago from Germany (I live In France), used it for a short while and then put it away. When I brought it out to use there were all kinds of problems. So I contacted Pro-ject in Austria and they gave me the email address of their French agent, who then demanded I supply the purchase info. Because it was bought in Germany they refused to deal with me - caveat emptor.

 

When I still lived in Spain I bought through an American friend an AT33EV MC cartridge for $399, the exchange rate with the £ at that time was £1=US$ 1.77. The lowest price in the EU was in the UK @ £544 = $962 - a huge saving. My friend repackaged it and it sailed through the Spanish Customs. 

 

What really hacks me off is having to pay a 20% import tax not only on a product from outside the EU but on the shipping cost as well.