Wednesday 25 January 2012

TV's Cross border savings (CND/US)

Because of the size I've never considered lugging one of these around but because of the prices and relative stability of the electronic product I'm getting closer to purchasing one. The key here is the more inconvient you make it the more you save. Sometimes it's not worth it..

Warranttee's may be only US.. if it breaks you have to take it back over the border (unless it has Canada/US) (samsung there is North american Warrantee)
Going through the border and dealing with taxes is inconvient
You will pay the local taxes (unless you physically shop at a state that doesn't have local tax) Oregon isn't that far is it?
Will be subject to many taxes/tariffs..

If it's not made in Mexico/US/Canada (likely Mexico) it will be charged a ~5% (samsungs are made in Mexico)

HST of 12% will be added when you go over the border (HST is said to be removed at some point into the future and will go to PST levels of 8%?

a simple example for a samsung:

Locally for a 
PN59D6500 1899*1.12=2126.88 Local BC authorized dealer, full warrantee maybe even in house service depending who you buy it from.
online in the us it's roughly 1500USD + taxes and tarrifs
 
1500+1500*0.085+1500*.05+1500*.12+1500*.07=1987.5*
.085 state tax
.05 state tax (may be removable if it's made in US/Mexico)
.12 BC HST tax soon to be 7-8%
.07 luxury tax but there is some talk this doesn't exist

*I'm reading that tax /tarriffs are comulative so it's technically being taxed twice.
*don't forget the exchange as it's no longer at par (anywhere from1-5%)
You need to decide if that's worth it.. could be 105-250 savings.. that's assuming it doesn't ever break.

In the future the savings could increase to 521.88 if you can order it from Oregon, buy a mexican made panel,not pay local WA tax, Pick up in WA (or drive down) wait till HST is revoked and GST is only added.. but again assuming it doesn't break.

BTW: If you can diggle with the price point and get it lower than your 2 day maximum 700$ you can get awy from not paying any tax/tarrif if that's the only thing you bought.

BTW: it's important where you live as well, resident, if you are in Alberta you don't pay taxes but must show principle resident there.


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