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NZ and mayb AUS buyers (Another thread but an important one)

Fallenae
Level 2
Hey guys I got a message from an Oculus fella. Sure we all know its USD now and I can come to terms with the price. But I'm still not 100% sure about the GST thing and didn't really get a solid answer here. Palmers tweet says extra money is for local tax, this guys says regulatory fees. Do you think its a possibility it could be shipped with GST paid sticker or something? I just highly doubt it, based on past experience.


[–]to TheTwistgibber sent 1 day ago

Hi can you confirm is $699 for NZ is in USD? Also is NZ GST included and paid for?



[–]from TheTwistgibber sent 48 minutes ago

Yes, it is in USD. The price is inclusive of all regulatory fees.


http://www.whatsmyduty.org.nz/whats-my-duty website is quoting $236.85 and you have to register a client code by mail beforehand because its over $1000NZ???

Item Duty
Computers
Value: 699.00 USD

NZ Value: 1,043.28 NZD

Duty: 0.00 NZD

GST: 156.49 NZD
156.49 NZD
GST on freight 31.12 NZD
Total 187.61 NZD
Entry fees* 49.24 NZD
Amount due 236.85 NZD

*Entry fees:
Once the threshold of $60 of duty and/or GST payable is reached, then a Customs import entry transaction fee (IETF) of NZ$29.26 (GST inclusive) is payable. Please note that the $60 threshold does not apply to tobacco and alcohol products. Entry fees are collected on these two regardless of the amount. A Ministry for Primary Industries biosecurity system entry levy (MPI Levy) of $19.98 (GST inclusive) is also collected by Customs. The total fees equal NZ$49.24 (GST inclusive)


This is all way to complicated for me just to buy a toy for me games.

Could someone from Oculus PLEASE just let me know that either:
-Yes, all GST is covered and it will be shipped and delivered to my door.
-No, I will have to get my shipment from customs after paying GST and fees.
-Sorry, we really don't know.

So that I can put my mind to rest and just look forward to April..
78 REPLIES 78

Pheckit
Level 2
"onefang" wrote:

So Oculus Ireland is who my contract is with. I dunno if there is an Oculus Australia, or why I was dealing with Oculus Ireland. Ireland has nothing to do with this, the amounts are in US dollars, this is Australia. Sure, we share the same Queen with Ireland, but I don't think that is relevant. Considering corporate tax avoidance is big in the news these days, and having offices in Ireland is specifically mentioned often as one of the ways this avoidance is done, well that's my suspicion.


Sorry onefang, as an Irishman living in NZ I have to pull you up on this. Ireland is a republic and has an elected President as the head of state, we do not share the same queen as Australia and New Zealand.

Otherwise I'm 100% behind you regarding the mystery charges - Oculus needs to stop being so cagey and provide a detailed invoice breakdown of what international buyers are being charged.

onefang
Level 3
"Philpot" wrote:
"onefang" wrote:

So Oculus Ireland is who my contract is with. I dunno if there is an Oculus Australia, or why I was dealing with Oculus Ireland. Ireland has nothing to do with this, the amounts are in US dollars, this is Australia. Sure, we share the same Queen with Ireland, but I don't think that is relevant. Considering corporate tax avoidance is big in the news these days, and having offices in Ireland is specifically mentioned often as one of the ways this avoidance is done, well that's my suspicion.


Sorry onefang, as an Irishman living in NZ I have to pull you up on this. Ireland is a republic and has an elected President as the head of state, we do not share the same queen as Australia and New Zealand.


Apologies, and I have some Irish blood in me (5%), so no excuses.

blanes
Level 8
It' got nothing to do with the Queen and everything to do with a tax loophole in Ireland that companies such as Google, Microsoft & Apple, and now Oculus, utilise to avoid their tax obligations in Australia. It is illegal and the Government here has been going after these companies however from the news reports the progress is slow and stalled in court hearings.

onefang
Level 3
Weellll, given our current governments pro business being evil / anti-tech stances, I'm not expecting much from them to be honest. After all, Oculus Rifts are only used for watching porn that's been downloaded from the innerwebz. Oh wait, that's the NBN.

radd
Level 2
Oculus Rift pricing for Australians is US$590 + US$59 GST (10%), for a total of US$649.
Shipping is US$120 + US$12 GST (10%), for a total of US$132.

Oculus VR LLC is registered with an ABN (http://abr.business.gov.au/SearchByAbn. ... 9760407953), so is required to collect GST regardless of the value of the product, even if the product is shipped from the US.

However, they only need to pay GST on services purchased within Aus, so if they shipped direct from US then they don't need to charge GST on shipping (but may have to pay tax at origin on shipping).

Pheckit
Level 2
"blanes" wrote:
It' got nothing to do with the Queen and everything to do with a tax loophole in Ireland that companies such as Google, Microsoft & Apple, and now Oculus, utilise to avoid their tax obligations in Australia. It is illegal and the Government here has been going after these companies however from the news reports the progress is slow and stalled in court hearings.


Sorry mate, better read up on international tax law.

Companies' corporate tax returns have no bearing on the cost of shipping of the Rift so we should probably keep on topic eh? 😉

blanes
Level 8
"Philpot" wrote:
"blanes" wrote:
It' got nothing to do with the Queen and everything to do with a tax loophole in Ireland that companies such as Google, Microsoft & Apple, and now Oculus, utilise to avoid their tax obligations in Australia. It is illegal and the Government here has been going after these companies however from the news reports the progress is slow and stalled in court hearings.


Sorry mate, better read up on international tax law.

Companies' corporate tax returns have no bearing on the cost of shipping of the Rift so we should probably keep on topic eh? 😉


Not sure if you are just being a smart arse however it is relevant to the topic because we are talking about inflated charges. You can do the reading on international tax law if you want but without being a tax expert I have read enough and listened to the news reporting of how these companies are engaging in tax avoidance by using payments that go via Ireland.

My point is that gouging Aussie buyers for US$ 132 or $186 aussie in shipping hardly feels fair when Oculus as a company is conducting their business by dodging tax here in Australia in similar fashion to MS, Apple, google and others. How else do you explain payment going to "Oculus Ireland" because if there is a valid reason I would really love to hear it ?

metalnwood
Level 4
I dont think that they are using that loophole because there is no major part of oculus in australia to need to try and avoid paying taxes.

I think you will find that you are paying more tax to the aussie government how it is working now than if it was working how you want it to.

If they sold it direct to you and shipped direct then you would not pay any gst and the aussie govt would not get a cent from the sale. As it is they send it to a local warehouse and then GST must be collected and sent to your govt.

The reason big corporates have something is ireland and other places is so that they can, for example, hold patents in that country and then the local company after taking lots of $$ can then make royalty payments to their offshore company as an expense before tax. After all of this is legally sent offshore they are taxed on a smaller amount of $$.

None of this has anything to do with what oculus are doing, the tax avoidance thing is a complete red herring. Lets say that the card was charged though oculus USA. Still no tax required to pay to Aus.

blanes
Level 8
Thanks I understand how gst & import duty for australia operates. I have purchased plenty of consumer goods including electronics from vendors in U.S. Euro & Asia. Oculus added US $50 probably tax at the checkout plus the huge ship cost. When I paid for the Dk2 via paypal it was not to Oculus Ireland but Oculus LLC which I believe is the company Oculus setup to collect gst in Australia. The reason payment was made to Oculus Ireland is yet to be explaind but is it a red herring ? Possibly, but I am suspicious like others and until there is more transparency from Oculus it is impossible to know.

metalnwood
Level 4
It is a red herring. Tax will be paid as it is delivered by the local warehouse.

I think you have heard that ireland among other places are used for tax avoidance, you saw that you were billed by oculus ireland and then put two and two together to make 5 🙂

If you have a read up on why they (apple, google etc) are doing it this way then you will realise that it is not applicable to the sale of the CV1 and oculus dont benefit and are not avoiding any tax that could be due to australia.

For ouclus to be doing what you have read about they would have to have a retail store inside australia that you are purchasing from. The whole thing you are talking about is based on australian registered companies moving profits offshore so they dont pay tax on them. That is something completely different.

If you are going to say they are doing something, as you have said in more than one thread, then you should have an understanding of exactly what it is you are talking about.