United States of America Travel Forum

Hello from Australia, could you tell me if some states have a tax on purchased goods similar to VAT in the UK or our GST (goods and services)? I wish to purchase embroidery items from the US and wondered if this tax is dropped for overseas sales. If for example it would be a lot cheaper to buy from 1 state rather than another I would like to know.

Most (all except 5 or 6) U.S. States have sales taxes, which are of course not charged on purchases which are to be sent out of the country (or even the State). However, this doesn't mean that it would be cheaper to buy from one State rather than another, since the tax would NEVER be charged for an overseas sale (any more than UK VAT would be for sales outside the EU), which puts them all on the same footing for exports!
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States

Sales Tax varies from state to state. For example, California charges various sales tax percentages depending on what county you are in. Anywhere from 7.5% to 8.25% (at the moment). State of Nevada charges a little more than 3%. Most retail stores will probably not accomadate not charging you tax because you are from another country unless you are making a very large purchase such as buying from a jewelry store. There is no sales tax (in California) on services rendered or food purchases from a grocery store. There is sales tax on food in restaurants. I know, very complicated and we won't talk about the hotel taxes!

Every state that has a sales tax charges the buyer the tax except for certain exemptions such as other businesses who buy for resale, governments or non-profits (generally you need a certificate of tax exemption to show at the time of purchase). So if you walk into a store and the state has a sales tax on the item you buy you will pay sales tax no matter where you live. Different states have different percentages and sometimes different parts of the state have a different precentage, such as here in Pennsylvania where the state sales tax is 6% but the city of Philadelphia has a 7% sales tax. However there are also items in Pennsylvania that have no sales tax such as food you buy for home preparation, clothes and prescription drugs.
So the answer to your question is that there is no VAT tax but most states have a sales tax which you will pay if you buy something that's taxable. Therefore if you are spending more than a few dollars and will be in a state with no sales tax it is usually best to buy it there.

I work in retail and I've never heard of any scenario where I would not charge the usual tax. When this has come up before I've asked others in my situation and nobody else knew about it either. So even if there is such an arrangement I would say it's unlikely you'll get very far if you refuse to pay sales tax in shops.

Thanks for your replies, in Australia and the UK there is sales tax as well as VAT or GST and people buying goods from overseas are exempt from the latter.

We had quite a contentious thread on this subject some time back. An Irish girl staying for an extended period was gnashing her teeth over the sales tax issue and got very shirty over the fact that Americans are exempted from tax abroad but foreigners in the US are not.
I've never actually bothered about it when shopping in Europe. I find the paperwork too much of a bother and don't particularly begrudge the small sums involved.

I agree dnwitte, I,ve never worried either mainly because I,ve never purchased extremely expensive goods, I think the older I get the less I worry about stuff like that and take the easy option!
The sales tax in the US isn,t horrendous anyway and a lot of items, clothes, makeup, craft goods, are so much cheaper than here in Oz.

You would have to check each state's web site to determine whether or not they have sales tax. It is not just a state thing either, counties and even towns can (and do) charge their own sales taxes. Expensive large cities tend to have expensive large taxes, so you might be better off making your purchases in medium sized to smaller towns. Solvent states charge less than insolvent ones (like my own California).

You will have to pay the sales tax no matter where you are from or where you are sending the things. We have a daughter in Canada and also have to pay Customs fees in addition to the taxes.

As far as Europe, we pay the VAT and have never (as mentioned above) bothered to fill out any paperwork to get any of it back. My theory is that governments need money to operate and if we are using services, we should pay taxes. Hence, when we are in Europe using their roads and wonderful transportation services, enjoying their garbage collection and wonderful clean streets, parks and historic restorations, they should get our tax money. We look at it as sort of rent on things enjoyed. LOL

Yes, everything in a retail store is taxed. If you go to garage sales and flea markets, you won't have to pay sales tax.

There is no "tax free" or tax refunded to foreigners in the U.S. I don't mean the duty free stores at airports.

I don't think that anyone mentioned that the sales tax is always added on to the sale, when you are paying for the merchadise, unlike in most other contries, where the VAT in included in the price. The VAT in Argentina is 21%. This way it doesn't hurt, as much. A piece of clothing with a price tag of $100.00 will actually cost as much as $108.75. Could even be more.

Hi Margaret,

As an embroider I know you will have a wonderful time shopping for your needs in the US, it is like an Aladdins Cave. I don't know if you have checked out US Web sites for embroidery/embroidery companies/suppliers etc, if you do you will get an idea of the prices, it is so much cheaper then what we pay in Australia, after all our population is so small compared to the US and so they can keep prices down. I have never worried about paying the tax as you will be so much better off. I don't know what type of embroidery you do but if you would like to have a look at the site's I check and order from occasionally just email me and I will happily pass them on. Even with postage and insurance I save money. That way when you are there you will have a ball park figure. I must admit when I have been there I have not had time, next time!

The bottom line is this: If you came, shopped, and found the items you want, have them shipped to your Australian home and there should be no tax. Or if they balk at that, take your list home and order via mail or internet. When items are shipped out of the particular state, there should be no sales tax. OR go do your shopping in New Hampsire where there is NO tax. BTW, there is NO national Sales Tax in The USA, YET !!!

Thank you very much for the information.