Can you advise me on how to figure value added tax from China?

Can you advise me on how to figure value added tax from China?  Purchasing one electronic item (iRobot) listed as $78.36 US.  Is there some sort of formula I can use?  The supplier arranged delivery to my door.

ANSWER:

Cool product! Let me know if it works well. I’d like to get one too.

Since freight it paid by the seller, this most likely means that you are taking title to the goods after the goods have left China. That means the supplier, rather than you,  is responsible for getting the China VAT paid and collecting any potential VAT rebate upon exportation. In other words, the supplier has most likely built the VAT into the cost and you need not worry about VAT.

BTW, just as a head’s up, I was under the impression that IRobot could only be purchased from an IRobot designated distributor rather than factory direct from China. There are a lot of scams out there offering to sell famous brands, direct from China factory.  I don’t know the details of your case, but you may find of interest the following blog post I wrote about this kind of China scam at http://chinasourcinginfo.org/2011/08/22/genuine-products-from-china/

I am very concerned you are falling into a scam because I saw the product you wanted to buy on sale at a local electronics store here in Shenzhen and the price was 50% higher than if it was purchased back in the USA at retail level. So if you are buying one unit and the price to you is so low, I fear it is too good to be true.

Let me know how this order works out for you.

Wishing you successful China sourcing!

Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.

Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com)

 

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