Reducing Tax when buying from AD

[Maverick82]

What do you guys do now to reduce tax when buying from an AD?

They now charge tax according to the state that the watch is being shipped to so the only option is to send the watch to family/friends in a lower tax state.

Any other ways to reduce tax being paid on a watch ?

[Sg6067]

Seems like a lot of work to save a small amount of money. Most ADs will only ship to the address on your drivers license for tax purposes. The only real way left to save on taxes is to purchase the watch in a different country and get a VAT/tax refund. Still not really a big savings.

[vh2k]

Ship from the AD to an address in another state. Many ADs understand what you are trying to achieve and will accommodate. It’s not insignificant savings. If you are in a high tax state, you can save $800 on a $10,000 purchase.

[siempreko]

The only times they will add the tax when shipping to another state is when they have a store in that state. Save nearly $800, on top of a 15% discount. It pays to shop smart, and to do your homework!

Yes, I do enjoy the finer things in life... but I also like to save money where I can!


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[fsprow]

Sorry to be a downer but I think paying taxes due is part of being a good citizen.

[cfracing]

Originally Posted by vh2k

Ship from the AD to an address in another state. Many ADs understand what you are trying to achieve and will accommodate. It’s not insignificant savings. If you are in a high tax state, you can save $800 on a $10,000 purchase.

True. But technically it is the responsibility of the buyer to report the purchase to the state and pay the taxes although no one ever does. At least that is what my AD told me.

[ArtNouveau]

Moral outrage aside, the new ruling that started changing things last year requires a retailer charge tax on any in person transaction, and on a mail order shipment to any state they have a presence in. I believe there are also $$ thresholds shipping to states they do not have a presence in, a certain amount is allowed before they have to start keeping track on it. This was mostly aimed at the online shopping giants like Amazon.
In the past year I have received a few items shipped from out of state that did not charge sales tax, most of them did.

[ScottishRolex]

The alternative is to go on a vacation, you know, when vacations are a thing again post covid. From there pick a destination with an AD and favorable sales tax rates.

I picked up my first DJ in St. Maarten years ago.

From there it’s up to you to declare it at customs and pay tax.... many just wear the watch and ship box and papers home in luggage or mail.

[Oscar2010]

Purchased my Sub from an NY AD while I was in Hong kong last year via a wire transfer (no tax). One - out of three AD's that I work with only does this to a few States now....

[ckwong]

Cash = no tax

[ArtNouveau]

Originally Posted by ckwong

Cash = no tax

Don’t know where you are but I don’t know of any US dealers that would automatically give you an 8-10% discount for paying cash.

[77T]

This issue of universally collecting sales/use tax for the buyer’s distant state sprung from SCOTUS ruling in SD v Wayfair.

It paved the way for States to pass legislation defining commercial nexus if the seller’s web presence was available within the buyer’s State.

As for avoiding sales tax, some small single location ADs don’t collect it when shipping to a distant State if they don’t use a web-based commerce platform.



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