GST on repair return

[niharika]

Does customs charge you on repair returned items as well?

Regards
Raki

[LewisM]

In my prior experience, IF the repairer clearly marks the item on the Customs declaration as a repair return, no, you won't pay GST.

I have also ALWAYS kept my receipts going OUT, clearly noted as REPAIR RETURN in the lodgement documentation.

[RickS]

I got hit up for $208 by DHL when my Apogee U16M was returned a few weeks ago. I assumed that Andor got the paperwork wrong but when I received it the docs clearly said it was being returned after a repair. I probably should have harassed DHL about it but the amount wasn't quite enough to make it worth the pain...

Cheers,
Rick.

[LewisM]

Apparently, Italy does NOT have any kind of Return for Repair clause both in and out, so there can be snags. I know someone who was hit in the butt big time for an Officina Stellare warranty repair.

[Merlin66]

Raki,
Having had a couple of repair returns and customs demands for payments the answer is to make a claim for "Repair return".
You will need documented evidence for the return of the goods to the supplier.
It most certainly can be done successfully but takes a bit of time. Customs will probably still charge you $48 for their time (!)
Best of luck.

[gary]

Hi Raki,

In schedule 4 of the Customs Tariff Act of 1995 (https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transactions/GST-and-imported-goods/?page=2), goods returned to Australia
after repair or replacement that were either repaired under warranty
or were supplied as part of a safety recall, are free of GST on importation.

Repairs outside of warranty, if below AUD1000, are below the low value
imported threshold and also not subject to GST at the moment.

[Kunama]

You will also need to show documentation that the items were exported by you for repair and the repairer will need to specify that the items are " customer items being returned after repairs" and the cost of the repairs.

[rally]

Usually ask the repairer to include a copy of your export details and your covering letter/Invoice to them when they ship it back.
You of course should include copies of your export details in your export - so they can copy it !

A covering letter or better yet an Export Invoice by you, detailing the serial number and description of what you are sending them and this ts for warranty purposes and that there is no commerical value.
You also dont want your repairer to be hit with taxes on their end either.

Their invoice ought to include the words "Warranty Repair" and something along the lines of "No Commercial Value" in the $ amount to make it clear that the item is the same item that you exported - either by serial number of good description

If you dont do that customs may simply make a determination of the value of the item and levy GST on that value (assuming its above AUD$1000 inc freight and insurance) - in the absence of any thing else to go by.

[clive milne]

This is a very interesting doco on the legality of GST levied on imports....

https://www.youtube.com/watch?v=umVj5XQYAi8

[niharika]

Thanks for the advice and information guys :)
Luckily I asked, because I haven't thought about everything mentioned here for sure.