cazalea
[Seiko Moderator]
17069
If you paid the tax to a retailer in California you don't pay again
If the watch came from outside the United States, then you wouldn't have paid state sales tax and you owe Use Tax.
Since the normal carriers (Fedex, DHL, TNT, UPS, etc or ) electronically report your imports to the California Department of Tax and Fee Administration (CDTFA), you should go to their website, OR you can ask your tax preparer OR you can put it on your 540 Return yourself. Otherwise they will contact you and it's up to you to explain and pay. It doesn't always happen but when it does you will have a penalty to pay and they will monitor your stuff in the future (I'm speaking from personal experience).
If you bought it from another state retailer, they may or may not have collected the tax. The retailer will know and show you but won't have declared the value of the watch to the carrier who brings it to you.
I file separately with CDTFA and then I can make sure things are done properly. I can explain why I am not paying if an item is returned, like a watch or a couple years ago, my defective hi-tech hip flask.
Send me a private message if you want to discuss.
Cazalea
BTW - you have all year to pay that Use Tax.
California Use Tax
This is one of those wildly excessive and confusing taxes, I had never previously paid this so I am asking the California locals here, do you pay this use tax after purchasing a watch from another country even if you had already paid the full state sales ...
This is a humorous answer. Any similarity to an actual
answer is fictitious and purely coincidental: I do not live in California. 🤣😆😂
EU purchases
I buy only in EU zone to avoid difficult administrative situations. The US market is full of good watches, and most of the best Swiss watch brands are present in the USA, so buy national and the prices are not reaching heaven. I am jealous that i am no Am...
CA Use Tax has existed for as long as Sales Tax has...
Technically, you either pay sales tax or use tax if a company does not charge you the former. Retailers in foreign countries are not setup to charge you CA sales tax, that's why the forwarding company (FedEx, DHL, etc.) will charge you use tax upon cleari...
Excellent.
I did already pay the 10.25% sales tax which was calculated based off of my shipping location. This of course on top of the customs duties and shipping itself. Much appreciate the clarification, I received a letter addressing this tax last night and went ...
If you paid the tax to a retailer in California you don't pay again
If the watch came from outside the United States, then you wouldn't have paid state sales tax and you owe Use Tax. Since the normal carriers (Fedex, DHL, TNT, UPS, etc or ) electronically report your imports to the California Department of Tax and Fee Adm...
It seems odd for a dealer outside the US to be collecting US sales tax.
Unless they also have US physical location(s).
