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To stuff or not to stuff


#21

Pretty much the same but can’t be over $1500 or need an import license. We pay 7.5% duty, 10% VAT and then 10% income tax. This gets applied to anything over $75.


#22

You get charged income tax on things your import? Is that $1500 USD?

EDIT: I think I understand. You guys pay 10% income tax (we pay 25%), 7.5% duty (we pay 10%) and 10% vat (we pay 12.5%). There is no bottom level either, it is all taxable. Also we pay an additional 7% just because we purchased it from online (e.g. Amazon). It’s really a tax on the method of importation (airfreight via freight forwarder) but the intention is to tax online purchases.


#23

Yes, US$1500 but we have to pay the duty etc in Rupiah at the customs rate.

Because of the high import taxes, much of my sales of systems supplied by a UK company are drop shipped. I could not afford to sell it otherwise. The import tax alone would kill it dead and leave no profit margin at all.


#24

Drop shipping only works if the supplier builds the entire product ( in my case the whole machine) and the sends it to the customer. (Mass drop is an example of drop shipping then). Is that right?


#25

Yes correct, and in my case I am shipping the final product to the end client. Many do this. I bought an OBD2 emulator from an Australian company and it was shipped direct from China.


#26

Well, didn’t get charged duty.

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