Customs and GSt Rebates

[barry]

Here's one for the well travelled amoungst us.

Shortly I will be going overseas and am trying to decide if it is worthwhile to claim back the GST on some gear I purchased recently (value approx $6000).

My understanding is that the GST on the purchase can be claimed back on departure under the TRS scheme and that on return the goods are declared and that GST is reassessed taking into account the duty free limit ($900).

I assumed therefore the benefit in doing this is that you save the GST on the Duty Free allowance and anything over that GST applies.

Is this correct.

Also is it being idealistic they will waive the GST on the amount above the Duty free allowance.

What is the experience in this regard.

Barry

[gstark]

Hi Barry.

When did you buy? When are you traveling?

The GST rebate scheme only applies to purchases made within 30 days prior to your departure. Typically, they would credit your credit card used for purchase with the refund of the GST expended on any such purchase, but upon your return, you are then expected to include that purchase with any other purchases made.

With your $6K purchase, you are already well over the limit (for one person) upon your return, and thus there is little scope for flexibility upon your return.

From a practical PoV, what I've found is that some Customs officers do permit a little flexibility in terms of the $900 limit, in that if you happen to be a little bit over the limit, then it's probably not worth their while to collect a few bucks in GST. Consider that the limit is $900, and you may have purchased $950 worth of ... stuff. Therefore, you are $50 over the limit, and liable to pay $5 GST.

That's been my experience; I've never used the GST rebate scheme because, as a general observation, prices overseas will often be better than what can be obtained locally.

[barry]

Thanks Gary.

Goods comply with the 30 day limitation. Purchased a week ago and I leave Sunday week.

Seem like I will be paying GST on 6000-900=$5100 from what you said.

Don't want to run the risk of not declaring.

[gstark]

You do know that you need to export the goods too? That means that they must leave the country with you when you go.

Seem like I will be paying GST on 6000-900=$5100 from what you said.

That would be my expectation.

[muzz]

A few years ago I bought camera gear and claimed the GST upon departure overseas. The limit was $900 then too, but I was told "categorically" by the shop owner that once I went over the $900 limit, I was liable for GST on all of it - i.e in Gary's example, on the whole $950. The shop owner broke my purchases down and gave me invoices with a max of $900 on one and the remainder on another (e.g. camera body on one, lens and camera bag/accessories on the other etc). I claimed the rebate on the $900 invoice and once through customs posted all packaging and receipts etc back to myself so I wasn't carrying anything to indicate it's value. On return the gear was examined and I was asked if it was new ("I've had it for a little while" I replied - 3 weeks is a little while I think!) and did I buy it in Australia and they asked no more and therefore no more duty was levied.

Hope that helps.

[Dprime]

I've claimed it a few times before but not with camera gear. Mine was traveling overseas with snowboarding gear. Like already mentioned, the date of purchase on the receipt has to be within 30 days, and you must be taking the goods with you. On both occasions I've claimed around $1500 worth of snowboarding gear, and they haven't blinked an eye, didn't even ask to see it (I'm sure an extremely long thin bag though resembles a snowboard, which was good enough for the officer).

Just remember, you have to get your goods sighted and your receipt stamped before you pass through customs, AND then once you are on the other side you go to another desk with your stamped receipts, and they will transfer the money onto your credit card. I think some people walk straight through customs and forget to get their goods sighted outside of customs and its to late, well thats the case in Sydney airport anyway.

I've never had anything of mine checked on return to the country either, so I'm not sure about the answer to that.

[gstark]

You're broaching a slightly different issue here ...

Just remember, you have to get your goods sighted and your receipt stamped before you pass through customs,

I think that you're talking about a different, but somewhat related, process here.

There's a system whereby you can have anything that you are taking with you on your trip sighted and recorded prior to your departure. This process avoids any angst upon your return should the customs officers, upon your re-entry to Oz, believe that you are trying to avoid your obligations by failing to declare some new purchases.

Any items sighted and declared prior to departure were clearly in your possession at the start of your trip, and therefore, absent the GST rebate scheme, would be exempt from further processing and charges upon your return.

Any newly acquired articles would not be included in any such declaration, and thus any items not so included might be liable to customs charges upon re-entry.

AND then once you are on the other side you go to another desk with your stamped receipts, and they will transfer the money onto your credit card.

This is the GST rebate scheme. At SYD, the desk is (or used to be) on the left once you have cleared Customs, Immigration, and the first security point.

I've never had anything of mine checked on return to the country either, so I'm not sure about the answer to that.

Always be honest and forthright. That is the only method/attitude I can suggest or recommend. I have frequently been slightly over the limits, and have always been dealt with in a fair, reasonable and professional manner by the staff at SYD.

[Dprime]

You just jogged my memory Gary , The reason I had to have my goods checked for GST before entering customs was because the items I was claiming GST back on were going in as under carriage luggage, and therefor wouldn't be in my possession after I pass through customs, which is why I needed to have my goods receipts stamped before entering so I could show they actually exist, but are in luggage.

Still the same process, It was just different for me because it wasn't in my carry on luggage.

As for declaring it on the way home, It wasn't as if I was avoiding it, It was never told to me that I have to show it to anyone or declare anything that I had claimed GST on the way back through so I never mentioned it, They don't give you any forms or anything, all they do is staple a receipt to your receipt, to show they have transfered the GST funds to your credit card. It doesn't mention anything about having to do anything further after that process. Might be a little different when you have a more obvious $6000 dollars worth of camera gear though, a snowboard is a lot less questionable, which is why they probably never asked me about it when I declared other things.

[Yi-P]

What about going out and claim the GST, that has to have all original packaging and receipts, but once you are oerseas, ship the boxes (if you still want them) back to australia and drop the gears into your bag as used items.

[gstark]

That is not something that I would condone, suggest or support.

[ozimax]

I would suggest declaring everything. If your electrical gear is a month old, it is obviously well used and nowhere near new value. The customs people will usually understand this if you are honest and up front.

As for getting GST back at the airport - I have done this many times with no problems. I have never taken any packaging with me, just the item concerned and have never had any problem. They will look at the object, not the packaging. Of course, the scenario is different if you purchase something on the way to the airport.

Ozi.

[barry]

For what it is worth, I managed to claim the GST back on departure and was not charged any duty on the way back in.

The GST claims office were not interested when I asked them if I should declare the goods on the way back in so I didn't.

Customs X-rayed my bags on arrival and didn't seem too concerned that I had a big camera on top even though the gear showed up really clearly on their monitor.