Can I Claim GST on an Engagement Ring if Travelling Overseas?
This question often arises when a couple has recently acquired their new engagement ring from us and are preparing for an overseas holiday. In this blog, we aim to outline the essential details to help you grasp the process of claiming GST on an engagement ring purchased in Australia when traveling abroad.
In essence, you can reclaim GST on your ring when traveling overseas. However, upon your return to Australia, you must declare it, leading to the obligation of paying the GST upon re-entry into the country. So, to simplify, if you are a tourist purchasing your engagement ring from us in Australia, you can claim back the GST when departing the country. In contrast, an Australian citizen may not enjoy the same benefits. Let me delve deeper into this explanation; stay with me for further clarification...
Are you a visitor in Australia contemplating a diamond purchase, or are you abroad planning to make a transaction with us? The Tourist Refund Scheme (TRS) may seem perplexing, but we're here to simplify the process of making a purchase from an Australian retailer and guide you on how to save while buying in Australia as a tourist.
Travellers departing Australia have the opportunity to claim a refund on Goods and Services Tax (GST) or Wine Equalisation Tax (WET) through the Tourist Refund Scheme (TRS), managed by the Department of Home Affairs and the Australian Border Force (ABF). This applies to goods purchased from a registered GST retailer with an Australian Business Number (ABN). However, it's essential to note that TRS doesn't cover services like accommodation or travel, and claims cannot be made for products that don't include GST. Crew members of aircraft or ships are also excluded from the scheme.
To understand the TRS process better, consider the following key points:
The 60 Days Rule: The 60 days rule, often a source of confusion, starts from the final payment and pick-up date mentioned on the invoice. Custom-made designs with longer completion times are eligible as long as the final balance was paid and goods were picked up within 60 days of travel.
Physical Goods and Original Invoice: To claim TRS, present the physical goods and original invoice at the TRS desk at the airport. The item will be verified against the details on the invoice.
TRS Desks at Airports: Major Australian airports typically have two TRS desks – one before check-in and one after passport control. For jewellery claims, it's recommended to use the desk after passport control.
Goods Claimed Through TRS: Items claimed through TRS cannot be brought back into Australia. Re-entry with these items will result in GST charges, and they must be declared upon entry.
Options for GST Refund: Approved TRS claims offer three refund options: deposit funds into a nominated credit card, deposit into a bank account, or receive a cheque. The credit card option is usually the quickest, taking around 5 days.
Online Claim: Expedite the refund process by making an online claim before reaching the airport at https://trs.border.gov.au/.
For additional information on the TRS scheme, visit https://www.abf.gov.au/entering-and-leaving-australia/tourist-refund-scheme/for-travellers.