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.
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.
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.
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?
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.