Sales Taxes, Tariffs and Import Duties

First, and to be clear, AHS product pricing DOES NOT include any import duties, tariffs or taxes.  We separately charge, collect and remit Arizona State Sales Tax on sales made ONLY to customers in Arizona.

Currently, if you reside anywhere in the U.S. outside of Arizona, then you are responsible for sales taxes as might be due to your local government.  It is your responsibility to “self declare” and pay what is due.   If you reside outside the U.S., you most likely already pay taxes due upon delivery.

A major issue now entering into the world of online retail sales is that many countries, states and local governments (i.e. taxing authorities) around the world are adding new regulations that shift the burden for the collection of sales tax (VAT, GST, HST etc) onto the “offshore” or “out of state” retailer.   This has the potential to be a major game changer, and not in a good way.

International Import Duties, Tariffs and Sales Taxes

Most countries have removed import duties, or tariffs, from their tax laws in an effort to appear to support “Free Trade”.  Sales Taxes are, however, fair game, as these generally apply equally to domestically produced and imported products.  Generally, each country would work with the international shipping companies (Post Offices, FedEx, UPS, DHL, etc) to have each mail item “clear customs”, where the legality of an import is checked, then any taxes due are calculated and collected from the recipient on or before delivery.  That’s how it used to work, and still does in most cases.  But in an increasing number of situations, the rules are changing.

Some countries are now attempting to shift the burden for collecting and remitting their taxes to the offshore retailer.  I’m not quite sure how a government in another country can require me to collect taxes on the their behalf (and without compensation), but some are trying.  They say it is for the “privilege” of selling to customers in their country.  Australia, for example, now requires that if I make annual sales to Australian customers exceeding AU$75,000 I must register with the Australian Taxation Office and collect a 10% GST.   Fortunately for the moment I don’t come anywhere close to that threshold, but here’s the dilemma:  There are how many countries on planet earth?  Is there any uniformity?  Hell no!  So I have to research how many country’s sales tax laws?  Oh, and these laws can be changed any time they like, and exchange rates change on a daily basis.  So how often do I have to repeat that research effort?

To get an idea how obstructive this is, ask Australians if they can make purchases on the U.S. Amazon web site.  Last I read (uh oh…  more research), and specifically because of this issue, they are blocked from doing so by Amazon.  They get redirected to the Australian Amazon site, with significantly less product choice and selection.

Sales Taxes – U.S. Domestic

Prior to June 21st 2018, you, the US Customer, were required to “self declare” a purchase from an out of state retailer, and if sales tax (or not enough sales tax) was collected by the retailer, you were required to pay it yourself to your state tax authority.

On June 21st 2018, the US Supreme Court ruled in the “Wayfair vs South Carolina” case removing the previous requirement that a business have a “business presence” (often referred to as a “Nexus”) in a state before the business could be required to collect sales taxes.   No more.  What we have now is a regulatory burden of potentially gargantuan proportions in that any state with a sales tax can require out of state businesses to collect and remit their various sales taxes.  Well, you say, there are only 50 states.  Not quite that simple.  Many counties within those states, cities within those counties, and “special taxation districts” can and often do add their own sales tax.  Where I live in Arizona, for example, there is a state, county and city sales tax.  I am told by people in the know that there are upwards of 10,000 taxing entities in the U.S.  So I have to know which taxes apply to every customer (state and city I can identify, but county and “special districts” are a bit of a problem) and then research and understand 10,000 sets of tax laws?  Do i tax shipping?  In some jurisdictions it is subject to sales tax, in others it is not.  Then I have to prepare, document and file 10,000 annual sales tax returns?  Oh yes, again, these 10,000 entities can change the rules at any time!  More research.  Really ??!!!!

Now, if our wonderfully efficient federal government would get on the job and pass a set of laws (the do have the constitutional right to do so) that would put some controls on this – e.g. one tax rate for an entire state, returns filed a maximum of once a month (1-12 times a year), a “minimum” threshold for sales before taxes are required to be collected.  Nope.  We’re waiting.  But the states are not, and so far about half have passed their own laws.  Most allow a business with less that 200 sales AND less than $100,000 in gross annual sales to be exempt.  But not all.  Idaho and Oklahoma is $10,000.  Minnesota is 100 transactions.  Some states also say these limits apply in the year preceding the date of the current sale, meaning not a calendar year, but the 365 days before this latest sale.   Now there’s a fun wrinkle to keep track of!

How does this affect you, my customer?

First, I appreciate the business sent my way by every customer, domestic or international, small order or big.  Thank You!

That said,  I have no desire, interest or wish to collect sales taxes on behalf of any entity except the State of Arizona.  No choice on that one.  The complexity of regulation, the time it would devour to be compliant and to file those returns is quite simply more than I can allow.  If a single set of rates for an entire state do get set, and if the filing thresholds and requirements are reasonable, I will reconsider.

So I am now “counting” orders by country (where I know they are trying to extend collection to me) and by state for US customers.  I count both number of orders and total $$ value.  If (when?) I reach 90% of a tax entity’s annual threshold (either order quantity or total $$ value), I will cease accepting orders from customers in that country or state for the balance of the calendar year.  Two reasons:  First, most make tax collection retroactive back to the first sale (but I didn’t collect tax!), and secondly I simply don’t have the resources (time!) to do all the paperwork required.

How likely is it that I will cross that line?  Only California currently comes close for the number of transactions, so for the moment this is really just an interesting philosophical discussion.  But laws can change….  and politicians are always looking for new sources of revenue….  and what easier target is there than an out of state business that has no voice and cannot vote for them?

Below is a table that shows the out of state collection thresholds for the U.S. states that have, so far, implemented laws on the subject.  If your state isn’t on this list, don’t feel left out, I am sure it soon will be.

U.S. States with Online Sales Tax Laws

Source: Internet Retailer, November 2018

State Sales tax collection start date Minimum sales thresholds
Alabama Oct. 1, 2018 $250,000
Arkansas Jan. 1, 2019 $100,000 or 200 transactions
California April 1, 2019 $100,000 or 200 transactions
Colorado** Dec. 1, 2018 $100,000 or 200 transactions
Connecticut Dec. 1, 2018 $250,000 or 200 transactions
District of Columbia Proposed $100,000 or 200 transactions
Georgia* Jan. 1, 2019 $250,000 or 200 transactions
Hawaii Dec. 1, 2017 $100,000 or 200 transactions
Idaho July 1, 2018 $10,000
Illinois Oct. 1, 2018 $100,000 or 200 transactions
Indiana Oct. 1, 2018 $100,000 or 200 transactions
Iowa Jan. 1, 2019 $100,000 or 200 transactions
Kentucky Oct. 1, 2018 $100,000 or 200 transactions
Louisiana Jan. 1, 2019 $100,000 or 200 transactions
Maine July 1, 2018 $100,000 or 200 transactions
Maryland Oct. 1, 2018 $100,000 or 200 transactions
Massachusetts Oct. 1, 2018 $500,000 or 100 transactions
Michigan Oct. 1, 2018 $100,000 or 200 transactions
Minnesota Oct. 1, 2018 10 retail transaction totaling $100,000 or 100 retail transaction
Mississippi Sept. 1, 2018 $250,000
Nebraska Jan. 1, 2019 $100,000 or 200 transactions
Nevada Proposed $100,000 or 200 transactions
New Jersey Nov. 1, 2018 $100,000 or 200 transactions
North Carolina Nov. 1, 2018 $100,000 or 200 transactions
North Dakota Oct. 1, 2018 $100,000 or 200 transactions
Oklahoma July 1, 2018 $10,000
Rhode Island* Aug.17, 2017 $100,000 or 200 transactions
South Carolina Nov. 1, 2018 $100,000
South Dakota Nov. 1, 2018 $100,000 or 200 transactions
Tennessee*** Pending further legislation $500,000
Utah Jan. 1, 2019 $100,000 or 200 transactions
Vermont July 1, 2018 $100,000 or 200 transactions
Washington* Jan. 1, 2018 $100,000 or 200 transactions
West Virginia Jan. 1, 2019 $100,000 or 200 transactions
Wisconsin Oct. 1, 2018 $100,000 or 200 transactions

*Rhode Island, Washington and Georgia allow retailers to include a statement telling customers to submit sales tax in lieu of collecting the tax; those retailers must send Georgia customers with more than $500 in purchases a tax statement each year; in Washington, retailers with more than $100,000 in sales to the state must collect tax

**Colorado has a grace period that will run through May 31, 2019

***Tennessee signed an online tax legislation into law, then passed another law prohibiting enforcement of the passed law

So What is Being Done About This?

Small business advocacy groups are actively lobbying Washington to pass a Federal statute that will (hopefully) bring this monster down to something manageable and fair.  Sales Taxes are a fact of life, and the various governments have the right to collect them.  It’s the burden being placed on small business by these laws that needs to be addressed.

What can you do?  Call your local politicians!

Politicians generally ignore a situation until the volume of complaints on a subject get to be too much.  No point messing with city or county governments on this.  Small potatoes.  Call your elected representatives at your highest (e.g. Federal) government level, and at your State level.  Let them know how this is affecting you, their citizens and their voters.  Then call them again tomorrow, next week, next month.  Just maybe they will listen and will do something about it to make the system manageable.  Maybe.

 

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Revell’s New Release Plans for 2019

One of the first emails I received in 2019 was from Revell Germany, announcing their planned 2019 kit releases.  No dates were provided, and they do not currently show up on their web site.  Here is the list, in no particular order:

  • RV3883 Embraer 190, Lufthansa (2018 cs)
  • RV3842 Airbus A.320NEO, Lufthansa (2018 cs)
  • RV3881 Airbus A.350-900, Lufthansa (2018 cs)
  • RV4952 Airbus A.321NEO, Airbus (prototype cs)
  • RV3883 Airbus A.380-800, Emirates (‘Wild Life’ cs)
  • RV3872 Airbus A.380-800, Lufthansa (2018 cs)

It’s good to see the A320NEO and A321NEO kits on the list, but personally I wish Revell could show a little more imagination in their choice of liveries, and a little more flexibility in their choice of airframe manufacturers.

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Happy New Year, Best Wishes for 2019 !

First, my thanks to all my customers for helping make 2018 one of our best years.

Our thanks go out to all our suppliers, big and especially small, who develop and deliver the kits, resin parts and decals we enjoy.

I will do my best in 2019 to continue to bring great service and to offer one of the widest selections of airliner kits, decals and resin parts.  I am working to add some new product lines, including kits and decals, so stay tuned, more to come.

Best Wishes to you and your family for 2019 !

 

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New Product Announcements, week ending December 8th 2018

8ADecs released 6 new sheets this week.

 

DRAW Decal released another in their P-51 Mustang series.  DWxx-P51-098 depicts SE-BGK in what is believed to be its original Swedish identity as 26158 of Flygvapnet Wing F16.  It is available in 1/24, 1/32, 1/48, 1/72 and 1/144 scales.

DW48-P51-098-2-W

TwoSix has released their Air Anglia DC-3 decal in 1/72 scale as a laser printed decal, joining a previously released decal in 1/48 scale.

TS72-193-Air_Anglia_DC-3-W

DRAW Decal released a a decal for the Pan American Douglas DC-8-62 that was leased from Braniff for a year, in 1/144, 1/200 and 1/100 scales.

DW44-DC8-015-2-W

TwoSix released a series of 1/48 scale Britten Norman 2A Islander kits packaged with their own decals.  Those decals have now been released for individual sale:

  • TS48-014  Air Seychelles BN.2A Islander
  • TS48-015  British Airways (Chatham flag) BN.2A Islander
  • TS48-016  Brymon Airways BN.2A Islander
  • TS48-017  Euroair BN.2A Islander
  • TS48-018  Jersey European Airlines BN.2A Islander
  • TS48-019  Olympic Airlines BN.2A Islander
  • TS48-020  Isle of Scilly Skybus BN.2A Islander

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New Product Announcements, week ending December 1st 2018

26Decals has released the following new laser printed 1/144 scale decal.  It includes a screen printed “details”decal.

  • TS44-904  Lufthansa Cargo Boeing 747-230F

TS44-904-Lufthansa-Cargo_Boeing_747-230F-W.jpg

26Decals has also sent the following 1/144 scale screen printed decals to the printer:

..and

STS44-318-CAF-Boeing-CC-137-W

BOA Decals has released two new 1/144 scale decals:

Flying Colors Decals has announced two new 1/144 scale screen printed decals that will be available shortly:

  • FC44-056 Windows & Details, Boeing 777-200 / -300
  • FC44-057 Pan Am (‘billboard’ cs) Boeing 737-200

DRAW Decal released a set for the MD80 in 1/144 and 1/200 scale:

DW44-DC9-053-2-W

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British Airways ‘Negus & Negus’ Releases

Choices! Choices!!

26Decals has the following screen printed decals “At the Printer”, and should be available mid December 2018.  They are reprints of previously released decals:

  • STS72-010 British Airways, British Airways Cargo Boeing 707-320B/C
  • STS44-272 British Airways L.1011 Tristar
  • STS44-131 British Airways Boeing 747-100 / -200B / -200F

STS44-131_BA_Negus_Boeing_747-100-200-W

DRAW Decal released a series for the British Airways ‘Negus & Negus’ cs Boeing 747-100 fleet in 1/144, 1/200, 1/100, 1/125 and 1/72 scales.

DW44-747-065A-2-W

 

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Zvezda 737-MAX8 Kits are Here!

Headline says it all….  Will start to pack pre-orders tonight, should have them all in the mail by Friday noon.

Click ZVE-7026 to place your order!

ZVE-737-MAX8-Box-Art-W

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New Product Announcements, week ending November 18th 2018

DRAW Decal released a nice sheet for Trans Caribbean Airlines Douglas DC-8-61CF for use with the Minicraft DC-8 kit (with replacement PW JT3D engines).  It is also available in 1/200 scale for use on a Nitto 1/200 scale DC-8-61 kit.

DW44-DC8-013-2-W

8ADecs released two new sheets this week.

Vintage Flyer has released 5 sets for the early Boeing 707 series 100.

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New Product Announcements, week ending November 11th 2018

DRAW Decal released a new China Eastern set for the imminent Zvezda Boeing 737-MAX8 kit.  The decal is also available in 1/200 scale.

DW44-737-170X-2-W

26 Decals released a new sheet for the Japan Air Lines Douglas DC-8-61 / -62 in the final scheme carried by these aircraft.  This decal features a laser printed airline specific sheet, with a separate silk screen printed “details” sheet.

  • TS44-901  Japan Air Lines Douglas DC-8-61 / -62

TS44-901-JAL-DC-8s-W.jpg

 

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New Product Announcements, week ending November 4th 2018

A handful of new releases this week….

8ADecs has released two new sets this week.  The COPA sheet is available in 1/144 and 1/200 scales.  The Japan Airlines sheet can be ordered with or without windows printed on the stripe.

26Decals released a new sheet for a rather colourful Airbus A.350-900.

  • TS44-863  Air China “Expo 2019” Airbus A.350-900

TS44-863-Air-China-Expo-Airbus-A350-900-W

 

 

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