We are finding that a number of countries are introducing laws, requiring for the oversea shops to collect VAT and GST etc. on behalf of their customs authority.We intend to comply with such laws, and will be collecting such VAT and GST etc. from customers in the applicable countries.
Countries we are currently collecting taxes for:
- Australia
- New Zealand
- Singapore
- EU countries (IOSS program)
- USA (17 states)
California, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Nevada, Ohio, Pennsylvania, Utah, Virginia, Washington
[For Customers in Wisconsin]
From 1st June 2023, we will be stopping collection of sales tax from our Wisconsin customers.
We have found that our sales in Wisconsin is currently under the threshold for tax collection rule of Wisconsin.
Any taxes we have collected up to 1st June 2023 will be submitted to the state.
We appreciate your understanding greatly, thank you very much.
Countries we are working to collect taxes for:
We will be making announcement of actual date that we will start collecting taxes, for each countries that we are ready to collect for.
What this means for customers in these locations
1. Transparency of costs
You will be able know the tax amount beforehand. No more worries about unforeseen tax charged after your order enters your country.
2. Possible saving on handling fees
Because your tax is pre-paid, you may be freed from added handling fee charged by delivery agents for collection of taxes.
Details by each Country
[USA]
We will be collecting Sales Tax for orders addressed to any of the 17 states subject to our tax collection.
Q1. Who will be required to pay sales tax?
A. We will charge sales tax on your order if the order is addressed to one of the following state.
California, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Nevada, Ohio, Pennsylvania, Utah, Virginia, Washington
Q2. When Hobby Search starts collecting sales tax?
A. Orders charged after 1st, November 2022.
Q3. Why Hobby Search is collecting tax on behalf of state authorities?
A. America has a very complicated taxation rules, but the website below has a good summery of economic nexus and the details per state.
Please refer to "Who does economic nexus affect?" in article below for details.
[external link: Avalara - Economic Nexus]
[EU]
Tax collection for EU countries has start from 11th October, 2022.
We will charge VAT for shipments with product value of EUR 150 or less, and remit this to the tax authority of your country.
If the total product cost in a single shipment is over EUR 150, you will be required to pay VAT at the border.
[United Kingdom]
We will charge 20% VAT for order cost GBP 135 or less.
Commencement of tax collection for United Kingdom is taking longer than our expectation.
We may make announcement as soon as we are ready.
[Australia]
We are collecting the 10% GST for orders with total product value of AUS$1,000 or less, for shipments to Australia.
[New Zealand]
We are collecting the 15% GST for for shipments to New Zealand from 7th March, 2023.
[Singapore]
We are charging 8% of GST for order with items valued below SGD 400.
Starting from Jan, 4th 2024, new tax rate 9% will be applicable.
For orders including any items valued SGD 400 or more, GST must be collected at your boarder.
[Norway]
We are planning to charge 25% of VAT for order with items valued below NOK 3,000
(for orders including any items valued NOK 3,000 or more, VAT must be collected at your boarder).
Commencement of tax collection for Norway is taking longer than our expectation.
We may make announcement as soon as we are ready.
Point of consideration
Please be noted that orders received prior to the start of tax collection may be subject to tax collection,
if we charge you for the order after the start of tax collection.
Please also be noted that we have been receiving reports the tax authorities charging customers tax, despite us collecting these.
If you are charged duplicated tax. please be sure to notify us with your proof of payment, so that we can refund the tax we charged.