Import GST question - please help!

[Ashleigh]

Hi,

Does anyone know if one upgrades, does one pay tax only on the difference in price or for the whole piece all over again? Thank you.

 

[LaraOnline]

Re: Import tax question - please help!

When you say 'import tax', do you mean exporting from the US to another country?
Australia has no 'import tax', as there is a free trade agreement between the US and Australia.
But you will pay GST.
I would imagine that the total cost you pay in cash (the total cost minus the amount you get credited back for your old diamond) would be the amount you pay GST on. Although how you would convince the authorities that you have upgraded, not paid the full amount, i'm not so sure.
Praps someone who has had experience in doing this will speak up.

 

[justginger]

Re: Import tax question - please help!

Ugh, this is something I hadn't ever thought of before. The taxation stuff is such a nightmare. I imagine it would be possible, but difficult to get out of paying for the whole amount. You'd have to have a vendor who was crystal clear with their paperwork. Ie "round brilliant diamond, value of 20,000, received 10,000 credit for previous stone, purchase price of 10,000." I think with a good, solid paper trail you'd be able to prove it was only a purchase of 10k, not 20k.

 

[Ashleigh]

Re: Import tax question - please help!

Yes, Lara, I'm referring to GST. How can I change the title so that more people with experience can see this thread and help?

Ginger, is Poppy your upgrade? So you paid GST on the entire ring again?

Thank you.

 

[LaraOnline]

Re: Import tax question - please help!

I think this is an area where you would have to tread very carefully...I feel sure I have read of people having 'issues' with customs when they have, for example, sent their diamond is to be set. But praps this was a result of paper work mistakes...
This upgrades / repairs issue is going to be an increasing issue for Aussie PSers as increasing numbers of us import direct.

Ginger, is it easier to buy while on is holiday, and then pick up and wear? Does that extinguish the need to pay.... Haven't travelled so for a while but from memory you need to declare any big os purchase as you re-enter the country...which seems more than a little big-brotherish to me, but that's the nature of ever-expanding gov't it seems....

 

[justginger]

Re: Import tax question - please help!

I think this is an area where you would have to tread very carefully...I feel sure I have read of people having 'issues' with customs when they have, for example, sent their diamond is to be set. But praps this was a result of paper work mistakes...
This upgrades / repairs issue is going to be an increasing issue for Aussie PSers as increasing numbers of us import direct.

Ginger, is it easier to buy while on is holiday, and then pick up and wear? Does that extinguish the need to pay.... Haven't travelled so for a while but from memory you need to declare any big os purchase as you re-enter the country...which seems more than a little big-brotherish to me, but that's the nature of ever-expanding gov't it seems....

Yes, you must pay tax on anything you receive overseas that is over $900 (I think that's the correct amount -- odd that it's actually $100 less than the tax threshold for receiving items in the mail). I mentioned this in another thread - there are exceptions if you have owned something for an extended amount of time, designed to give people who are moving here a break from paying tax on all of their worldly possessions for a second time.

Ashleigh, Poppy wasn't an upgrade - she was an entirely separate purchase from my engagement ring, thus the entire amount was taxable. I don't have any plans to upgrade in the near future, but as a PSer would never completely rule it out, so I am keen to know myself how an upgrade would be handled from a tax point of view.

 

[Ashleigh]

Re: Import tax question - please help!

Hi, does anyone else know how GST work? I'm looking to upgrade soon and hope to avoid having to pay GST on the original price twice. How does one go about only paying GST on the price difference? Many thanks.