Tourist Refund Scheme - iPhone Question

[sydunipete]

I know this stuff has been asked and answered before, but many of those older threads have been closed and I imagine my case is a pretty typical example so worth asking again.

I bought a new iPhone 6 - 64 GB for $1149. If I claim back the GST through TRS that leaves a net (taxable upon return) value of $1044.

I then subtract 20% depreciation (I am overseas for 2 months) and I get $835.

So I believe I can legitimately answer no to the immigration customs question about declaring goods over $900.

True?

 

[kpc]

I know this stuff has been asked and answered before, but many of those older threads have been closed and I imagine my case is a pretty typical example so worth asking again.

I bought a new iPhone 6 - 64 GB for $1149. If I claim back the GST through TRS that leaves a net (taxable upon return) value of $1044.

I then subtract 20% depreciation (I am overseas for 2 months) and I get $835.

So I believe I can legitimately answer no to the immigration customs question about declaring goods over $900.

True?

Based on what I was previously told by customs, you need to declare it...they will then apply the 20% depreciation.

 

[zig]

I did this in November and on arrival back in Sydney I declared the phone and some other items purchased overseas. I was asked what I was declaring and then just waved through to the exit. My view is it is easier to declare it.

 

[Aussie_flyer]

You need to declare... you don't assume depreciation for yourself .

Also the officer i spoke to said its the gst inclusive price that they use... i.e $1149.

 

[medhead]

You need to declare... you don't assume depreciation for yourself .

Also the officer i spoke to said its the gst inclusive price that they use... i.e $1149.

They can't use the GST inclusive price since the GST has been refunded. Plus of course if they did then charge GST they would be charging GST on GST. Not to mention the whole point of the question is about goods purchased/obtained GST free.

 

[kpc]

You need to declare... you don't assume depreciation for yourself .

Also the officer i spoke to said its the gst inclusive price that they use... i.e $1149.

That's exactly what I was previously told by customs...if you don't declare, you don't get the benefit of the 20% depreciation.

 

[Aussie_flyer]

They can't use the GST inclusive price since the GST has been refunded. Plus of course if they did then charge GST they would be charging GST on GST. Not to mention the whole point of the question is about goods purchased/obtained GST free.

Sorry but the customs official was quite insistent on this.

 

[kpc]

Sorry but the customs official was quite insistent on this.

Yup...I tried medhead's reasoning above to no avail!

 

[Sprucegoose]

If there are goods say worth $1500 for two pax then that is well under the combined limit of $1800. Therefore no issues?

 

[coriander]

If there are goods say worth $1500 for two pax then that is well under the combined limit of $1800. Therefore no issues?

Correct. Under the family provision, a family (defined as two adults and any number of dependent children) can pool their allowances (currently $900 for adult $450 for children).

 

[medhead]

Sorry but the customs official was quite insistent on this.

Yup...I tried medhead's reasoning above to no avail!

There are two issues.
Firstly, it is a self assessment system, like our tax system. Therefore, I deduct GST, if it has been refunded, in determining if I'm under the $900 (or whatever pooled allowance).

By way of an example if I purchase something for $1100, and I get back $100 then the value/cost of the item is $1000. The Question on the declaration is "Goods obtained overseas, or purchased duty and/or tax free with a combined total price of more than $900". My view is that the total price of that item is $1000, that is the tax free price. Noting that the question clearly says purchased tax free, it can't include GST if it was GST free.

But parking that:

If I'm not under the allowance with the deducted GST then it's time to declare the goods. The question then becomes what amount will they use to calculate the GST owed. If it is the GST inclusive price, that is contrary to the principle of not charging GST on GST. that is my question for you, what did they use to calculate the GST that you had to pay? In my example, they should only charge $100 in GST, not $110.

Fortunately, I'm always under the allowance amount so have never encountered this issue.

 

[burmans]

Yup...I tried medhead's reasoning above to no avail!

I wonder what ATAR you need to become a customs official?

 

[sydunipete]

Thanks for the help. I'm flying solo so I can only use my allowance.

It sounds like I should declare it and expect that whatever tiny amount by which it exceeds the limit is waived. Worst case, I have to pay all the GST that was refunded to me and I waste a bit of time.