18% tax on orders via internet valued under $200?

Feb 7, 2007
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Have you seen Roberto Cavada yesterday? Around 11.45 pm on Telenoticias he turned into a 10-minute opinion/monologue base don the events yesterday and he was hitting hard, really hard... wow that guy has guts! Especially knowing him being a Cuban in a "host" country.

During his monologue, among other things that had to do with yesterday's events, he was talking about tax on Internet purchases.

In the same newscast edition, you could see Temistocles Montas , minister of economy, saying that according to the information he has from dominican aduana, the tax on Internet purchases does not violate DR-CAFTA. like DGA is the legal authority on DRCAFTA interpretation... Give me a break!
 

Castle

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Sep 1, 2012
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Have you seen Roberto Cavada yesterday? Around 11.45 pm on Telenoticias he turned into a 10-minute opinion/monologue base don the events yesterday and he was hitting hard, really hard... wow that guy has guts! Especially knowing him being a Cuban in a "host" country.

I'm always wary of what people of the likes of Cavada, Nuria, Alicia Ortega, etc have to say. It's not so much the guts but the protection they get from higher spheres to say what they want them to say...
 

Ken

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Jan 1, 2002
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In the same newscast edition, you could see Temistocles Montas , minister of economy, saying that according to the information he has from dominican aduana, the tax on Internet purchases does not violate DR-CAFTA. like DGA is the legal authority on DRCAFTA interpretation... Give me a break!

Hopefully the President will take seriously the communication from the US Embassy.
 

SKY

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Apr 11, 2004
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If this goes through we should all band together on DR1 and create a pipeline for electronics that previously were sent through regular channels.

Whoever is coming in can order for people and bring things in. We can work some sort of arrangement out among ourselves. I am talking about those of us that live here and travel to and from the DR.
 

Chirimoya

Well-known member
Dec 9, 2002
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I've been seeing calls for a boycott of the companies that pushed for this tax but it won't be easy: Grupo Cuesta (Supermercados Nacional), Grupo Ramos (La Sirena and Supermercados Pola), Plaza Lama, Iberia, Hache, Sema, Arbaje Soni, Carrefour, Ferreteria Popular, Ferreteria Americana, Molina, Prin, Zaglul, Ol?, KB, Amigo. I can't see La Cadena or Bravo there but the companies may have different trading names.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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If this goes through we should all band together on DR1 and create a pipeline for electronics that previously were sent through regular channels.

Whoever is coming in can order for people and bring things in. We can work some sort of arrangement out among ourselves. I am talking about those of us that live here and travel to and from the DR.
LOL

[video=youtube;d7uKjo_URBo]http://www.youtube.com/watch?v=d7uKjo_URBo[/video]
 

AlterEgo

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Jan 9, 2009
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One has to wonder if this will affect the mundanza door-to-door shippers. Someone could ship a box or blue drum full of whatever today - what about next week?
 
Feb 7, 2007
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Hopefully the President will take seriously the communication from the US Embassy.

I guess not, because today Minister of Industry and Commerce said it was NOT incompatible, because everytging will be like it was before there just will be iTBIS. According to him DUTIES would be in violation, ITBIS which is internal tax, is not.
Industria y Comercio aclara reforma fiscal no es incompatible con el DR-Cafta - ElDia.com.do
According to him there will be no slowdown of service (oh yeah how do they want to achieve that?) the only way there would be no slowdown is if packages under US$200 would flow through customs like they flow through now, and if the couriers were to collect and remit ITBIS on DGII's/Aduanas's behalf, based on the invoice value included in each package. But then I see lots of invoice faking as a result if that was the case.
 
Feb 7, 2007
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I've been seeing calls for a boycott of the companies that pushed for this tax but it won't be easy: Grupo Cuesta (Supermercados Nacional), Grupo Ramos (La Sirena and Supermercados Pola), Plaza Lama, Iberia, Hache, Sema, Arbaje Soni, Carrefour, Ferreteria Popular, Ferreteria Americana, Molina, Prin, Zaglul, Ol?, KB, Amigo. I can't see La Cadena or Bravo there but the companies may have different trading names.

Boycott on non-food items. I mean come on we won't boycott specials of Potatoes at 7 pesos per pound, right? But yes, we can boycott anything that is IMPORTED and was purchased by us online previously.

As was suggested here Impuestos a las compras por internet en Rep. Dominicana, ?alguna soluci?n? one of the best way is to be EVANGELIST among locals to INCREASE buying on Internet. That will be even harder hit for ONEC. Only around 40% with access to Internet (and even this is considered elevated) has ever in their life bought something online.

Also those who have Dominican companies, can switch their mailboxes into "corporate accounts" and that way the ITBIS they pay on imports will be deductible for ITBIS offset from ITBIS they collect from their own customers.
 

Chirimoya

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Dec 9, 2002
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Good post, rubio. In reality I can't see myself or most people observing the boycott but for anyone who is determined there are alternatives like smaller, non-chain supermarkets.

As mentioned earlier, I mainly buy goods that aren't available here. The main exception I can think of is vitamins. I tried getting the local GNC to stock a particular supplement that was recommended to me, but they wouldn't, so I looked online and noticed just how much cheaper the other vitamins that we usually buy here were. I ended up ordering the lot. The other is printer cartridges - the shops that are supposed to sell them rarely have them in stock and I was fed up with having to spend the best part of my day driving around from place to place.

Most people I know here already buy stuff online.

We changed our account at Mail Boxes Etc. to our business name recently too.
 

windeguy

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Jul 10, 2004
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I am told that when donP posted the above link it had the President's recommendation to remove the 18% tax on internet purchases (under $200 US?), but now the article has been revised and does not have that recommendation.

This is the sentence that was in the above article at first but is now missing:

SANTO DOMINGO.- El presidente Danilo Medina promulg? este s?bado la ley de reforma fiscal y solicitar? al Congreso eliminar el impuesto de compras por Internet.

What do you think that means?
 

donP

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Dec 14, 2008
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Changes Expected

The link I gave above lead to an article which was obviously updated after it had been first published.
It now does not contain the good news which can still be found here:
Presidente promulga reforma; eliminar impuesto internet - Almomento.net :: Periodico Digital Dominicano

According to this (and the earlier version of the said link), the president will submit a bill to Congress (next week) suggesting to withdraw the tax/customs on internet purchases (no amount for value limit given).


donP
 
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windeguy

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Jul 10, 2004
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The link I gave above lead to an article which was obviously updated after it was first published.
It now does not contain the good news which can still be found here:
Presidente promulga reforma; eliminar impuesto internet - Almomento.net :: Periodico Digital Dominicano

According to this (and the earlier version of the above link), the president will submit a bill to Congress (next week) suggesting to withdraw the tax/customs on internet purchases (no amount for value given).


donP

Good. Looks like that removal of the 18% tax for Internet purchases will happen for items under $200 US.
 

caribmike

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Jul 9, 2009
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Hopefully...

Or they had 2 versions of that article prepared in advance and published the wrong one too fast...