Paying for the RED - ?

I live in the UK and the HVX is about £4,500 typically, with the dollar rate as it is going the Red One costs about £9,000. I simply justify saving that money because I'd be getting something which is more than twice as good as I what I was originally intending to purchase
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Dont forget the price of Red one camera is $17,500 plus state tax, PLUS UK TAX of 17.5%. A rip off for us in the UK. But that is not the fault of Red or american tax, it is our UK tax rules:(

As each month goes by Red just get better and better.

Gibby there must be loads of guys wishing they had your prowess for getting work and the knowledge and experience to give those clients exactly what they want. It was nice to hear both homosapien and yourself mention smaller format camera and comparing the sheer value Red offers compared to them at even 1.5 times the price it is cheap.

Michael
 
mike the beginner said:
Dont forget the price of Red one camera is $17,500 plus state tax, PLUS UK TAX of 17.5%. A rip off for us in the UK. But that is not the fault of Red or american tax, it is our UK tax rules:(
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I'm not too sure on the state taxes when importing Red but I own several businesses and I will be buying the camera through one of them or creating a new company in order to claim back the VAT of the purchase. This might sound illegal but hear me out...

Create a genuine rental business for your equipment give it a name, get a bank account and register for VAT, make a website advertise in places such as this very forum and any where else. It's easier than you think and it doesn't cost a penny. If you get any takers then all is good, you can earn money pay the VAT for the money you earn and operate as a proper business. Believe me if you want people to rent your equipment you will want to be VAT registered, it means they can claim their VAT back from you and it means that you look more professional.

I would be more than happy to help out anyone from the UK for setting up a business model for rental of their RED Camera here and in VAT paying countries. Please give me a PM if you have any questions about this and don't forget by spending a couple of days doing it you can save about £1500+ ($3000) and also earn a bit of cash on top through rental later.

I will be investigating insurance premiums for rental soon and would be more than happy to pass on my knowledge to other people here. Infact I will probably do a post including most of what you need to know to set up a small company such as this in the near future.
 
Outstanding advice Gibby and Homersapien!

I can say that for Australia something similar to Homer's info is appropriate. I have already started my own business (see sig) and with an ABN (or ACN) you will be able to offset your GST in much the same way.
 
mike the beginner said:
A rip off for us in the UK. But that is not the fault of Red or american tax, it is our UK tax rules:(
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I've actually done some research on this very topic, and this is how I've worked it out:

1) You don't pay US tax.

2) You DO have to pay import duty. The amount of duty you have to pay depends on how exactly Customs and Excise classify the camera. It can range anywhere from about 4.5% (if they classify it as a "cinematography" camera) to about 22% (if they classify it as a "video" camera). I think they're unlikely to classify it as "cinematography" as I'm guessing the definition of such includes the ability to shoot on film. But they may also not classify it as a "video" camera as it does not contain a tape transport mechanism.

3) You then pay 17.5% VAT (as on anything else). Customs and Excise will happily collect the full amount of tax from you upon importing :)

I don't have the actual figures to hand at the moment, but I did work out the maximum we'd pay would be about £13k (for the camera body). On the plus side, Cooke's are cheaper over here :Drogar-Sick(DBG):

Homersapien makes a good point about importing it as a business rather than an individual, but you do have to pay the VAT upfront then claim it back.

BTW, it really isn't worth trying to dodge customs. If you get caught you pay the full import duty, a hefty fine and they get to keep your nice new camera too!
 
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Stephen W said:
I've actually done some research on this very topic, and this is how I've worked it out:

1) You don't pay US tax.

2) You DO have to pay import duty. The amount of duty you have to pay depends on how exactly Customs and Excise classify the camera. It can range anywhere from about 4.5% (if they classify it as a "cinematography" camera) to about 22% (if they classify it as a "video" camera). I think they're unlikely to classify it as "cinematography" as I'm guessing the definition of such includes the ability to shoot on film. But they may also not classify it as a "video" camera as it does not contain a tape transport mechanism.

3) You then pay 17.5% VAT (as on anything else). Customs and Excise will happily collect the full amount of tax from you upon importing :)

I don't have the actual figures to hand at the moment, but I did work out the maximum we'd pay would be about £13k (for the camera body). On the plus side, Cooke's are cheaper over here :Drogar-Sick(DBG):

Homersapien makes a good point about importing it as a business rather than an individual, but you do have to pay the VAT upfront then claim it back.

BTW, it really isn't worth trying to dodge customs. If you get caught you pay the full import duty, a hefty fine and they get to keep your nice new camera too!
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You guys in the UK shouldn't complain too much about VAT - here's what most of us in the U.S. are having to deal with... http://www.askquestions.org/articles/taxes/
 
I agree, don't try to rip off customs and excise they will screw you over completely if you do. I was advocating making a genuine business and actually doing it the right way.

I've just done a search on the tax classifications and came up with this for duty fees:

Section XVIII: Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof

9007: Cinematographic cameras and projectors, whether or not incorporating sound recording or reproducing apparatus

9007 11: Cameras

9007 19: Other

Taric Code = 9007190000
Duty Rate for this Taric Code into United Kingdom = 0%
Duty Rate for this Taric Code into Australia = 3.7% (Third country duty)

If you would like to check this out for yourself here is a link to the online calculator which lets you check the duty on most things. The Taric Code is something you need to give Customs and Excise or your agent who imports something. It's likely that someone like Fedex or whoever was used to ship worldwide would build this into their charges however. I've had to use this when shipping stuff by sea before. I believe most countries can find out their duty fees from this site.

Taric Calculator
 
This is confusing??????? Ok does that mean that if i went over (lets say) to collect the camera in person, because i was a foreign person (British) i would not be charged any American tax or duty al all. Then once i have arrived in Britain at the airport i would have to declare the camera or risk being fined and loosing the camera right. So i go through the declared area and get charged 17.5% vat PLUS import duty depending on whether it is viewed as a film camera in which i pay nothing or a video camera in which case i pay a lot!!!


What is it, does anyone know for sure. I found the link details left me still unsure? Who knows 100% what the situation is??????

From going to a camera costing $17,500 it could go to one costing £13,000 Thats like at least $27,000 SURELY SOMEONE HAS THEIR FIGURES WRONG SOMEWHERE. PM me if you wish i really need to know what the situation is. I have saved up and sacrificed a lot to get this camera and i read on this forum (or DVinfo) that the final figure would be more like £12,000.

Michael
 
Well, in Norway the VAT is 25% [a bloody quarter of the 17500!!!], so the final in dollars: wobbling 21875$ [136,710NOK]...
Maybe it is possible to avoid the dual taxation by not paying US tax and paying Norwegian only? it must be a less expensive way.

or maybe just dodge that customs officer by risking half a year income...
 
zuvis said:
Well, in Norway the VAT is 25% [a bloody quarter of the 17500!!!], so the final in dollars: wobbling 21875$ [136,710NOK]...
Maybe it is possible to avoid the dual taxation by not paying US tax and paying Norwegian only? it must be a less expensive way.

or maybe just dodge that customs officer by risking half a year income...
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Sales Tax in the U.S. is only paid by people who make a purchase from within the state that charges the tax. I live in Washington, so if I buy something from California over the Internet, then I pay no sales tax. The same holds true if you live in a foreign country... if you purchase the item without flying to California, then you pay no California State Sales Tax. If, on the other hand, you are in the mood to fly to California and buy it there, then you will have to pay California sales tax. The sales taxes also differ depending on which state you're in... for instance, Oregon does not have any sales tax.

But you're stuck with the VAT either way. Stay happy though, your VAT dollars have helped to give you a working public transit system and good health care. Here in the U.S. we don't even have much in the way of public restrooms.
 
Best way to find out in the UK is phone up Customs and Excise and ask them. They are there to help. Give them as much information a possible and ask them to get back to you with their answer. Make sure you keep hold of their answer if it is your favour, as it might be usefull if, when on importing, they quote another figure to you.

http://www.hmrc.gov.uk/menus/contactus.shtml
 
Lowkus said:
But you're stuck with the VAT either way. Stay happy though, your VAT dollars have helped to give you a working public transit system and good health care. Here in the U.S. we don't even have much in the way of public restrooms.
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completely agree with this one! I am happy. lovely scandinavian socialism is very conformable indeed and I gladly pay my taxes for it.
the idea of avoiding customs is of course only hypothetical.

it is possible to apply state culture support system to finance part of the camera cost, but it takes time and does not always workout.

best way is to earn it.
 
I'm hesitant to take the advice of Customs because in my experience, it's in their best interest to tell you to take the MOST expensive, and red tape lovin' (no pun intended) solution. Get their input, and then talk to a few parties that have imported/bought similar items...

Amortizing the camera as a business cost is a good route to go, if it is a legitimate small business, or you already have one set up. Otherwise, the costs involved (at least here in Canada) are a zero sum game, or may even be prohibitive. You might be better paying all the costs , than starting a small biz, that will cost you more in the long run, and/or divert you from the purpose of your purchase, IMHO.

I could use a holiday in Cali to pick up my camera, though. :beer:


RED # wish I was higher
 
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Steve is right

the import duty for a camcorder is anywhere between 4% and 14% - that all depends on what the features are on it. Things likes DV in for example or can it be used as a webcam ?!?. The only way to find out for sure is to ring them and give them a detailed description of the camera.

But you wont pay US tax and you can get the VAT back, so it really shouldn't cost 13K. Maybe im an optimist....

if it comes to it I'll get the RED shipped to a friend in the US and then get them to ship it to me from them as a webcam gift....lol (can I say that?:-)) Or buy one directly, have a holiday and take it back in hand luggage :-)

Disclamier: post may not reflect my true actions. (phew)
 
how will i pay for RED 103 & add on's ..

1) Jams World in santa monica closed Aug 11, 2006 - now i will save that $$ and apply to the RED ... approx $200+ air fare, 200 food, 75 car rental , 250 hotel, 40 parking, 150-400 for shirts each month = 900+ savings per month

2) i'll keep my 2001 auto for another 3-4 years instead of buying a new car this year = approx 20K savings

3) i'll stop buying mephisto shoes for a few years = approx 1200 year savings

4) i'll move to Oregon just before it is shipped ..= $1800 sales tax saved

5) i won't be buying any Oakley sunglasses for few years = big $$

that should do it !!!!

RED 103 has no plans for commercial/rental use ..

plan to use on grand children , personal projects and friends projects ...
 
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donatello said:
5) i won't be buying any Oakley sunglasses for few years = big $$

that should do it !!!!
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:laugh:
donatello said:
RED 103 has no plans for commercial/rental use ..

plan to use on grand children, personal projects and friends projects ...
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:thumbsup:
 
Just a quickie:

1) If you go to the US and buy it, you WILL have to pay state tax for whichever state you buy it in. However, as a foreign national you can then claim it back when you leave the country.

2) When I was looking into it, Customs and Excise wouldn't give an answer as the camera doesn't exist yet - they'd want to see one before giving a definitive classification.

3) That top rate of 22% I mentioned earlier is unlikely. I worked it out with a 14% import duty and 17.5% tax to get to the £13k.

4) There are some very nice people who handle shipping and duty for you. Obviously they charge, but they pride themselves in giving C&E a kicking in order to get your import duty down. May be worth a look.
 
Current exchange rates are good around £1.89 to the dollar.

Assuming an import duty of 14% which I think is hopefully the highest, the camera would be around £10500 without the VAT. With it close to £12.5k.

Of course you might be paying Visa or Bank fees for currency conversion on top of that.

Best case scenario, if import duty was 4% then it's around £9600 ex VAT.
 
Darkline said:
Assuming an import duty of 14% which I think is hopefully the highest, the camera would be around £10500 without the VAT. With it close to £12.5k.
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Plus shipping (+VAT!)

Call it around £13k?
 
You know, if I import one from Brazil, a RED camera shoud end up costing me close to 30K. Just the body. So maybe, 14% import duties seems like a reasonable price to pay...
 
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