If you pay Duty do you pay Sales Tax?

L

lichint

Guest
Hello,
If you purchase some light fixtures from London and ship to the US for a client you pay duty - do you then charge sales tax on top of that ? - if you are reselling this item do you still pay local sales tax ?
 
Duty will be applied upon importation into the US, you do not pay it in advance. The item should be sold excluding VAT from the UK as it is for export. Finally depending on the valuation of the item and the state into which it is imported state sales tax may or may not be applied upon importation into the US as well.

I am not sure about local/municipal taxes but maybe it depends on where the bonded warehouse is and to where the items will be released, so yes you may be liable for state and as well as local/municipal taxes, though in my experience these are usually very minor anyway. As for valuations $200 is usually the starting point at which duty & taxes get applied. Good luck.

BTW you don't mind me asking why you are importing some light fixtures? I'm presuming its some high value speciality item, unavailable in the US.