GST refund on imports returned due to size issues

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Geektastic

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#177305 29-Jul-2015 11:45

Does anyone have experience of what happens if you pay GST on clothing on import by mail then have to return it due to fit not being correct?

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#1354300 29-Jul-2015 11:53

The Customs website specifically says: If you buy something from overseas and then change your mind or it doesn’t fit and return it, you cannot claim a refund of GST.

http://www.customs.govt.nz/features/charges/refunds/Pages/default.aspx (see: Drawbacks of GST).

Satch

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#1354312 29-Jul-2015 12:09

Great question and typical answer. Thieves...

keewee01

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#1354313 29-Jul-2015 12:13

Wow - so what's the bet that if they (the buyer) are getting the next size up that customs just go ahead and charge you GST and duty all over again! Thieves indeed!

If they really don't want people to work out ways to get around the system or cheat the system then the system needs to be fair

mattwnz

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#1354315 29-Jul-2015 12:17

It says you don't get a refund if you 'change you mind' but in some cases a refund is the only option if it is defective or not as advertised etc. I can't see why people can't apply for a refund from the IRD if you can prove it was redunded, otherwise they are making revenue from no service or product being provided. But when it comes to some legislation, some things don't make sense.

richms

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#1354357 29-Jul-2015 12:56

IMO its a risk you take personally importing things.

Dont want the risk, buy from someone locally who has already taken the risk and marked it up.

Richard rich.ms

mattwnz

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#1354362 29-Jul-2015 13:00

richms: IMO its a risk you take personally importing things.

Dont want the risk, buy from someone locally who has already taken the risk and marked it up.

Maybe that is why we pay so much more for some things in NZ. But it isn't great for the NZ economy having to pay more, just to cover these types of compliance costs. By not refunding GST on returned goods, the government are essentially making money from nothing. I guess they will argue that the cost to mange refunds is cost prohibitive.

DizzyD

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#1354394 29-Jul-2015 13:32

mattwnz:
richms: IMO its a risk you take personally importing things.

Dont want the risk, buy from someone locally who has already taken the risk and marked it up.

Maybe that is why we pay so much more for some things in NZ. But it isn't great for the NZ economy having to pay more, just to cover these types of compliance costs. By not refunding GST on returned goods, the government are essentially making money from nothing. I guess they will argue that the cost to mange refunds is cost prohibitive.

I think its ridiculous that we need to pay GST twice. Pay the GST overseas, and then pay the NZ Government some more. Ching ching

Slightly off topic. How come certain countries like South Africa allow tourists to claim back GST/VAT on items purchased inside SA when leaving the country? Why don't we do it?

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hsvhel

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#1354403 29-Jul-2015 13:38

DizzyD:
mattwnz:
richms: IMO its a risk you take personally importing things.

Dont want the risk, buy from someone locally who has already taken the risk and marked it up.

Maybe that is why we pay so much more for some things in NZ. But it isn't great for the NZ economy having to pay more, just to cover these types of compliance costs. By not refunding GST on returned goods, the government are essentially making money from nothing. I guess they will argue that the cost to mange refunds is cost prohibitive.

I think its ridiculous that we need to pay GST twice. Pay the GST overseas, and then pay the NZ Government some more. Ching ching

Slightly off topic. How come certain countries like South Africa allow tourists to claim back GST/VAT on items purchased inside SA when leaving the country? Why don't we do it?

Pretty sure we do, there's a threshold though from memory

Edit
I stand corrected
http://www.nzembassy.com/japan/going-to-new-zealand/about-new-zealand

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mattwnz

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#1354404 29-Jul-2015 13:38

DizzyD:
mattwnz:
richms: IMO its a risk you take personally importing things.

Dont want the risk, buy from someone locally who has already taken the risk and marked it up.

Maybe that is why we pay so much more for some things in NZ. But it isn't great for the NZ economy having to pay more, just to cover these types of compliance costs. By not refunding GST on returned goods, the government are essentially making money from nothing. I guess they will argue that the cost to mange refunds is cost prohibitive.

I think its ridiculous that we need to pay GST twice. Pay the GST overseas, and then pay the NZ Government some more. Ching ching

Slightly off topic. How come certain countries like South Africa allow tourists to claim back GST/VAT on items purchased inside SA when leaving the country? Why don't we do it?

You can do it if you buy from the UK too and come back to NZ with those goods. I am not sure if they allow tourists to do when they leave from NZ or not?

DizzyD

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#1354412 29-Jul-2015 13:46

mattwnz:

You can do it if you buy from the UK too and come back to NZ with those goods. I am not sure if they allow tourists to do when they leave from NZ or not?

If I can get a refund on my GST/VAT from overseas then I have no problem paying GST to the NZ government.

But If NZ does not even refund our tourists GST when they leave here, I think its very unethical that they expecting us citizens to cough up twice.

Paul1977

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#1354426 29-Jul-2015 14:13

Not the same thing, but talking about being taxed twice.

I recently bought some clothing from the UK and queried them about whether VAT should have been discounted at checkout, they said they don't distinguish between EU and non-EU customers so charge VAT on everything.

In this instance they did give me a 20% "special discount" for seemingly just asking the question, but why would they be charging non-EU customers VAT in the first place? They don't have to pay it on goods they sell to foreign buyers do they?

It would really annoy me if I paid VAT and then had to pay GST here as well.

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richms

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#1354428 29-Jul-2015 14:15

For NZ it has to be shipped out of NZ or shipped to a recognized reshipper for the islands to not charge GST on it.

If it walks out of the store with the person, then it gets GST on it. If its going to a friend who will repost it, then GST on it.

Richard rich.ms

nathan

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#1354431 29-Jul-2015 14:20

Paul1977: Not the same thing, but talking about being taxed twice.

I recently bought some clothing from the UK and queried them about whether VAT should have been discounted at checkout, they said they don't distinguish between EU and non-EU customers so charge VAT on everything.

In this instance they did give me a 20% "special discount" for seemingly just asking the question, but why would they be charging non-EU customers VAT in the first place? They don't have to pay it on goods they sell to foreign buyers do they?

It would really annoy me if I paid VAT and then had to pay GST here as well.

I've had no problems buying stuff from the UK ex VAT, sounds like this vendor likes the additional margin

Paul1977

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#1354439 29-Jul-2015 14:29

nathan:
Paul1977: Not the same thing, but talking about being taxed twice.

I recently bought some clothing from the UK and queried them about whether VAT should have been discounted at checkout, they said they don't distinguish between EU and non-EU customers so charge VAT on everything.

In this instance they did give me a 20% "special discount" for seemingly just asking the question, but why would they be charging non-EU customers VAT in the first place? They don't have to pay it on goods they sell to foreign buyers do they?

It would really annoy me if I paid VAT and then had to pay GST here as well.

I've had no problems buying stuff from the UK ex VAT, sounds like this vendor likes the additional margin

That's how it seems, unless they genuinely don't make the distinction and just pay VAT on everything as if it was a local sale (even the stuff they technically don't have too). But that would be a stupid business model.

Paul1977

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#1354450 29-Jul-2015 14:39

In regards to the original question, can't the replacements be marked as such "Replacement goods - no GST payable", or something to that effect?

GST is calculated on what you pay for the goods, and you haven't paid anything for the replacement items.

EDIT: Men's clothing is subject to 10% customs too, so sucks if they make you pay that twice too. And don't forget the import entry fee, or the biosecurity fee.

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