Gst payable on upgrades - from Australia! Help needed!

[Nessandadam41]

Hi,

Seeking some advice please!!!

Have any Australian ps users completed an upgrade on their diamond?

Did you pay taxes on the full price of the diamond OR the DIFFERENCE of the upgrade paid to the supplier?

I thought it would just be on the difference paid given that the tax was paid on the full original diamond which has been returned to the supplier as part of the upgrade process?

If gst is payable on the full price, this is obviously significant dollars that needs to be considered as part of the upgrade process finances!!!

I have received conflicting advice from my supplier and FEDEX custom brokers who are advising that gst is payable on the full price of the stone and the diamond return Is NOT taken into account!! I was advised that I could seek a refund on the original gst that was paid on the first stone but that can only be done within 12 months of the original transaction/ purchase date!!! Most upgrades would pass this date given that most people do not upgrade before 12 months!!! (

I would be grateful if you could share your advice and experience please. Please help!!

Thanks so much!!!

 

[Nessandadam41]

Bump )

Arjunajane? Justginger? Zahra?

Any similar experiences you can share?

Arjunajane - I found a similar topic of yours in 2009 I would love to ask you more questions about if you are still on pricescope?

Thanks!!!

 

[CaratLover2]

This issue has come up several times lately ...

The most recent discussion was in relation to having a stone which was bought in Aust sent to US for setting and whether or not GST would be paid on "stone+setting" or just the "setting" on re-import - considering that GST had already been paid once on the stone, and the invoice from the vendor would have only been for the setting. The upshot of that discussion was that there was every possibility that GST would be payable on the full improved value ie, "stone+setting", even though GST had already been paid on the stone once before.

I guess the same reasoning would apply in relation to an upgrade - it wouldn't matter - if the value of what you are importing is $X, then you'll pay GST on $X rather than on the $Y you've spent on the upgrade.

It doesn't make any logical sense to me ... but that's the ATO for you