Australia - GST for offshore yachts

[KiwiClive]

Hey All,

If I buy a yacht in Australia and re-register it in the Cook Islands are you able to claim the GST back before you leave? Tourist Tax rebate.

Just wondering if it’s worth upgrading gear in Aus or in New Zealand before heading to the Pacific Islands.
I am a dual citizen of the UK and NZ and my wife is an NZ citizen.
Has anyone had any first hand experience with this?

Cheers,
Clive.

[Alan Mighty]

Originally Posted by KiwiClive

If I buy a yacht in Australia and re-register it in the Cook Islands are you able to claim the GST back before you leave? Tourist Tax rebate.

I think the answer is something like "the Tourist Refund Scheme only applies to goods purchased at prices that include Goods & Services Tax (GST) or Wine Equalisation Tax (WET)."

So if you bought a yacht from a yacht builder or yacht retailer and your tax invoice for the purchase includes GST, then you could apply for a refund of GST.

Without a tax invoice explicitly showing that your purchase price included GST, do not expect a refund.

And should you be fortunate to be able to gain a refund of GST, then if you were to bring the vessel back into Aus waters, you would need to declare that your refund. Depending on the passage of time, the Aus Border Force may want to have GST refunded under the Tourist Refund Scheme returned to them.

[KiwiClive]

Sorry, I just re-read my post and to clarify I am talking about buying equipment for the boat like electronics etc and I was wondering if anyone had successfully claimed the GST back before they left the country.

[El Pinguino]

I don't think you will be paying GST on a second hand yacht nor do I think you will be able to claim back the GST you did not pay.

I was able - when departing Oz 19 years ago - to claim back GST on a swag of stuff, WWG, Epirbs, Ropey stuff. Not sure if you still can.

Other option - sail to NZ and buy stuff free of GST while you are there - far simpler. Although I'm not sure how that works for foreign flag yacht with NZ owner. Works for UK yacht with Aust owner.

[goboatingnow]

Originally Posted by KiwiClive

Sorry, I just re-read my post and to clarify I am talking about buying equipment for the boat like electronics etc and I was wondering if anyone had successfully claimed the GST back before they left the country.

No you are not capable of recovering GST. Nor are you capable on other parts of the world where vat is similarly charged.

A private individual buying the product in the country of question pays sales tax. Only under special schemes are certain things recoverable

The same situation applies in the U.K.

[fxykty]

Originally Posted by El Pinguino

I don't think you will be paying GST on a second hand yacht nor do I think you will be able to claim back the GST you did not pay.

I was able - when departing Oz 19 years ago - to claim back GST on a swag of stuff, WWG, Epirbs, Ropey stuff. Not sure if you still can.

Other option - sail to NZ and buy stuff free of GST while you are there - far simpler. Although I'm not sure how that works for foreign flag yacht with NZ owner. Works for UK yacht with Aust owner.

We were previously in NZ and as a foreign owned yacht we had a TIE (temporary import exemption), which provides for GST exemption for all goods and services for the boat, including importing from overseas. Now we’re in Australia and everything incurs 10% GST, including imports over $1000 AUD. NZ dollar is lower as well, so if you have the choice get the work done in NZ.

[Wotname]

My best guess is you would not be able to reclaim the GST under the TRS as you would likely be deemed as the vessel's crew.

From the ATO site https://www.ato.gov.au/business/gst/...dscheme&page=5

Crew members of an aircraft or ship are not eligible to claim refunds under the scheme.

The rules for travellers (i.e. not crew) are -
A traveller may claim a refund under the TRS if the purchases meet the following requirements.

The purchases are from a single business with the same Australian business number (ABN) and total AUD$300 (GST inclusive) or more. For example, if you bought items from one business, even on separate invoices, that together total AUD$300 the goods were purchased within 60 days of departure from Australia.
The traveller has original tax invoice/s for the goods.
The travelling passenger paid for the goods.
Carry or wear the goods on board the aircraft or ship as cabin baggage unless they are oversized or subject to aviation security measures and the airline requires them to be checked in as hold luggage.
Present their tax invoices (in English), goods, passport and boarding pass to the TRS facility when departing Australia.
Make the claim at the TRS facility at an airport at least 30 minutes prior to the scheduled departure time or 60 minutes if travelling on a cruise.

[El Pinguino]

Originally Posted by goboatingnow

No you are not capable of recovering GST. Nor are you capable on other parts of the world where vat is similarly charged.

A private individual buying the product in the country of question pays sales tax. Only under special schemes are certain things recoverable

The same situation applies in the U.K.

The TIE scheme in NZ and TRS in Australia mean you can very much either avoid or recover GST.

When doing my 14/15 refit in NZ I saved $NZ5figures in GST.

Using the TRS scheme at Australian airports I have reclaimed GST on a 25kg anchor, a cruising chute, a mainsail, 50% of my standing rigging, 250% of my running rigging ( once took an entire sacrificial suitcase full of rope out - 23kg ) , an Icom radio, assorted pumps, an inflatable dinghy, a fridge compressor, assorted Macbooks, a Sterling ultrapro charger, Victron solar charger, a solar panel, a couple of Lewmar hatches, assorted Raymarine electronics, ..... and a very long list of other stuff.
The deal is - don't bring it back, at least not right away. Some stuff such as jewels are never depreciated, other stuff is.

[goboatingnow]

Originally Posted by El Pinguino

The TIE scheme in NZ and TRS in Australia mean you can very much either avoid or recover GST.



When doing my 14/15 refit in NZ I saved $NZ5figures in GST.



Using the TRS scheme at Australian airports I have reclaimed GST on a 25kg anchor, a cruising chute, a mainsail, 50% of my standing rigging, 250% of my running rigging ( once took an entire sacrificial suitcase full of rope out - 23kg ) , an Icom radio, assorted pumps, an inflatable dinghy, a fridge compressor, assorted Macbooks, a Sterling ultrapro charger, Victron solar charger, a solar panel, a couple of Lewmar hatches, assorted Raymarine electronics, ..... and a very long list of other stuff.

The deal is - don't bring it back, at least not right away. Some stuff such as jewels are never depreciated, other stuff is.

Yes the Australian one has limitations but it’s one of the better ones.

EU vat law forbids refunds on private leisure yacht equipment for example.

[El Pinguino]

Originally Posted by goboatingnow

Yes the Australian one has limitations but it’s one of the better ones.

EU vat law forbids refunds on private leisure yacht equipment for example.

Good thing the OP isn't in the EU I guess.

I've never had a problem taking any of my kit into any other country , including NZ, either despite being over the 'personal allowance'.

Edit .. and also .. You don't have to pay VAT if you have the stuff sent to you from the UK/EU. I have only been hit for GST once on something over $1000 coming into Oz ( an an autopilot drive ) and then it is nigh on impossible to reclaim the VAT on your way out.

[goboatingnow]

Originally Posted by El Pinguino

Good thing the OP isn't in the EU I guess.



I've never had a problem taking any of my kit into any other country , including NZ, either despite being over the 'personal allowance'.

Agreed , most customs don’t look too deep thankfully, you’d need to get the GST back in Oz given the price of gear there.

[El Pinguino]

Originally Posted by goboatingnow

Agreed , most customs don’t look too deep thankfully, you’d need to get the GST back in Oz given the price of gear there.

In Chile you just slap 'Rancho de Nave' on your kit and carry your ship's papers.
I've survived more than a few inspections.

Cost in Oz? Depends what it is and what exchange rates are doing at the time. Bad time just now to buy ex US, good time to buy ex UK. I buy most stuff locally ia Au.

I try to avoid Amazon but recently bought a Jabsco Waterpuppy ex the US for much less than I could find one in Oz and it came with GST paperwork so win win.

[fxykty]

Originally Posted by El Pinguino

The TIE scheme in NZ and TRS in Australia mean you can very much either avoid or recover GST.



When doing my 14/15 refit in NZ I saved $NZ5figures in GST.



Using the TRS scheme at Australian airports I have reclaimed GST on a 25kg anchor, a cruising chute, a mainsail, 50% of my standing rigging, 250% of my running rigging ( once took an entire sacrificial suitcase full of rope out - 23kg ) , an Icom radio, assorted pumps, an inflatable dinghy, a fridge compressor, assorted Macbooks, a Sterling ultrapro charger, Victron solar charger, a solar panel, a couple of Lewmar hatches, assorted Raymarine electronics, ..... and a very long list of other stuff.

The deal is - don't bring it back, at least not right away. Some stuff such as jewels are never depreciated, other stuff is.

How? The AUS rules are that you can only claim for purchases within 60 days of departure - is that what you’ve done? Because as someone spending over a year in Australia with at least another 10 months before departure, there isn’t any way to avoid GST. The only exception is goods under AUD1000 coming in from overseas, and that’s applicable to anyone here.

[wingssail]

Originally Posted by KiwiClive

Sorry, I just re-read my post and to clarify I am talking about buying equipment for the boat like electronics etc and I was wondering if anyone had successfully claimed the GST back before they left the country.

We saved all of our receipts for equipment we bought during a refit in Australia and did receive a refund.

[fxykty]

Originally Posted by wingssail

We saved all of our receipts for equipment we bought during a refit in Australia and did receive a refund.

When? These days it’s only within 60 days prior to departure.