Claiming GST on a bike?

xxamr_corpxx

Under what circumstances could someone claim back GST on something they've bought? I've heard of soldiers claiming back GST on a gym.

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2004 Trek 1000
2005 Giant Elwood
ACE Folding Bicycle

nerdag

Two things:
1) claiming GST is different to getting a tax deduction - not sure if this is what you mean.
2) they both require that the item/service/whatever is either partly or wholly used for the purpose of the business (in the case of GST), or in your employment (if deductions)

So unless you're using your bike directly in your line of work (e.g. bike courier, bicycle tour operator), its highly unlikely that you'd be able to legitimately claim anything.

Commuting doesn't count - as you probably know, travel expenses to and from work are not deductible.

The only other thing I could think of for getting a GST deduction is to take it out of the coutnry within 30 days of purchase - that way you could get GST refunded as a traveller. Unless you've got a bike box, the luggage allowance to accomodate it, and a reason to go OS, that's hardly worth the effort.


A Flt. Lt. mate of mine (doesn't fly jets - he's actually a dentist) explained it to me this way: Defence personnel are required to be physically fit to be accepted into the ADF, and are required to maintain their physical fitness to stay in - so basically, part of what they are paid to do is stay fit. As such, they can claim a tax deduction on any activities that are relevant to this part of their work.

This shouldn't really be allowed, since practically every ADF base has a fully featured gym that is accessible for free, however, I wouldn't hold it against anybody who claims this - its certainly legitimate in the eyes of the ATO.

HTH,

n

nerdag

Hang on, didn't realise you were from NZ - so all of the above may not apply to you at all =)

Sorry for the confusion.

Rockslayer

I think in most cases you can claim on items if you take it out of the country under some tourist refund schemes. I think it does apply in most countries.

But they have to be new or less than a certain time/date from purchase. Aust, NZ, Canada, US. I think limits vary tho..

sogood

Claiming GST is not the same as for work tax deduction. Claiming GST for most people relates to getting back the GST on leaving the country. For this purpose in Australia, the value has to be greater than A$300 on a single receipt and you have to hand carry the item on-board the plane. So you can forget about it for bikes as it's not a cabin compatible luggage. If you are going on a ship, then it's all different.

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Morphed Bianchi Camaleonte IV 2006, Ridley Damocles 2006, Garmin, Mac

Rockslayer

That is correct, about it requiring to be cabin baggage but It is a little known fact that you can actually claim "check in" baggage items. This you must do before checking in and going through customs.

I know it is true through Sydney Airport the location is actually downstairs in the arrivals area. You can get your items sighted and signed off before checking it in. I know many who claimed this year in Feb for skis, snowboards and larger items.
If I can recal in Canada the same applied when I was there a few years back.

This isn't very well publicised and is not on the customs TRS website, You didnt think the government make it that easy would you? haha.

It's worthwhile checking out but of course it may vary in different countries.

sogood

Useful information, thanks! I'll enquire further next time I fly.

Have you actually claimed anything back this way? Do you know what the actual procedure would be? How could the customs verify that you have taken the item with you?

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Morphed Bianchi Camaleonte IV 2006, Ridley Damocles 2006, Garmin, Mac

Dave80

Did this 3 months ago when I went snowboarding in NZ (awesome trip, tonnes of snow and cheaper than oz). The procedure was:

1. Go to their office and show them the items before checking in your bags and they give you a docket (In Melbourne the office is downstairs at the Qantas end of the terminal).
2. Check in your bags as normal
3. When you clear customs you show the refund guys your docket and baggage receipt and they refund the GST.

The refund was on the snowboard, boots and bindings = $150

sogood

Excellent! I'll remember this and will be very very handy.

I have to find some ways of making good use of my 30kg international luggage allowance. To date, most of the time I don't even get to check one single item. Now, I'll need to work out how to properly pack a bike...

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Morphed Bianchi Camaleonte IV 2006, Ridley Damocles 2006, Garmin, Mac

Dave80

The baggage guy at the oversize collect point at Sydney airport was throwing stuff around like he was working in a timber yard (while passengers were standing around watching, imagine how it gets treated out of sight)! I grabbed our snowboard bag before he could get his hands on it.

I'm no expert in this area so please check - they didn't weigh our snowboard bag at all and it was bloody heavy. It had 2x boots, bindings, boards and all our snow clothes and thermals jammed in to protect the equipment and give us space in our suitcases. Based on this experience - go nuts with the padding.

Rockslayer

I haven't actually claimed this way myself, haha I usually go to northern hemisphere so I find it cheaper still to buy snow stuff there and bring back from north America or Japan. So I keep my bag empty as possible. But its still good if you have to buy before leaving the country.
In Sydney - the procedure is Exactly what Dav80 s but and downstairs the Qantas end as well.

I know at least the snowshops here are quite accommodating in assisting with advice on this and paperwork when it is a larger/expensive purchases. Maybe bike shops could the same?

Anyone going to Japan don't bother taking duty Alcohol there. Its cheaper at the 7 Elevens. Eg. 750ml Stoly vodka is 960 Yen = about 11.50 AUD Red Label JW scotch is about the same. Blue is about $15AUD. haha..Too good to be true but it is.

sogood

I can't believe it that Japan has something that's cheaper than Australia! This will give new meaning to drinking while cycling... Forget about Gatorade

As for travelling with bikes. Wouldn't mind working out a system to carry the bike. The idea of packing it in a cardboard box isn't very practical as it'll be difficult to manage on the other end. A soft bag obviously wouldn't work well from protection point of view. Anyone used those hard cases?

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Morphed Bianchi Camaleonte IV 2006, Ridley Damocles 2006, Garmin, Mac

sethk

Mate i told the guy that did my tax at H&R BLOCK that i used it for work, gave him the recpts for my bike (the purchase recept along with all the repare recepts helmet knne wormers etc) and clamed it all back on tax. you can clame the depreciation over 10 years i think.