Advice on tourist refund scheme - ipad 2

[auspal]

I intend to purchase an ipad 2 within one month of my overseas trip to save 10%

If you're heading online or into the shops to grab an iPad 2 tomorrow, and also heading overseas in the coming month, you can shave 10% off the cost of your iPad 2 by using the Tourist Refund Scheme (or TRS) to get a rebate on the GST component of the iPad 2's price tag at any Australian international airport.
That means putting anywhere from $58 to $95 back in your pocket, depending on which iPad 2 you buy – from the cheapest Wi-Fi 16GB iPad 2 (which retails at $579) to the flagship 3G+Wi-Fi 64GB model with its $949 price tag. It's the next best thing to getting a 10% discount at the cash register.
The TSR rebate also applies to any accessories you buy for the iPad 2, such as the $45 polyurethane SmartCover or the $79 leather SmartCover – as long as these are bought at the same time as your iPad 2 and appear on the same invoice.

Looking good until I read the caveat

The TRS is intended for products that are not coming back into Australia. In the case of locals this usually means you’ve bought a gift for family, friends or colleagues overseas.

I wasnt aware of this caveat when I purchased a video camera several years ago in the same fashion.

Any advice?

 

[markis10]

Its not true that the TRS is only really intended for exports, its still applicable should you be coming back with the goods however you need to be aware that the goods are part of your duty free allowance, if you have more than the required amount you will have to pay the tax.

 

[Skyring]

Why not buy the iPad2 overseas? Just about anywhere duty free is going to be cheaper than OZ, where you can only save the 10% GST.

 

[auspal]

Yes good points, I will look into a duty free purchase, I will be in Hong Kong, Thailand and UK.

If the ipad was brought back into Australia in packed luggage and it had been used overseas, how would customs know that it was a new purchase?

 

[medhead]

It doesn't matter if it is a new purchase or not. The TRS provides a refund of Australian tax (GST) when goods are exported. That doesn't stop you from bringing it back into the country, the key thing is that you have exported the goods. When you reenter the country you have an allowance of upto $900 per person that you can bring back into the country duty or tax free. So when you reenter the country you ipad is part of your $900 allowance and you don't have to pay tax on it (the export bit is irrelevant). The $900 doesn't include the GST that was refunded. e.g. you pay $990 for the ipad, get back $90 GST, the value is now $900 when you return (ignoring possible depreciation)

Do note that if you exceed the $900 you have to pay tax on the total value including the first $900.
Some people around here will tell you* that they can see that you claimed a refund when you return and your immigration card is marked as such. So they know that you possibly have non-taxed goods with you.

*I don't have experience of this and can only repeat what has been reported

 

[Maca44]

With the current competition in price of iPads these days, if it's under the $900, you may not even have to declare it on your return as per the incoming declaration form.

 

[simongr]

Why not buy the iPad2 overseas? Just about anywhere duty free is going to be cheaper than OZ, where you can only save the 10% GST.

I tried that - resource constraints made it hard to actually get hold of an iPad 1 last year - even a month after launch.

Yes good points, I will look into a duty free purchase, I will be in Hong Kong, Thailand and UK.

If the ipad was brought back into Australia in packed luggage and it had been used overseas, how would customs know that it was a new purchase?

Given that your duty free allowance is $900 - your after TRS rebate would take even the super max iPad below the $900. As it would be used you would get some depreciation consideration as well thus freeing up your DF allowance as well for overseas purchases.

Note that the iPad is NOT on sale in HK and Thailand as part of the official launch and thus can only be obtained through resellers who have imported via the grey market - thus you wont have great availability and wont get a great deal.

For the UK if you can find one you can get the VAT back so your prices would be (net of VAT and converted):

	UK base	Net VAT	A$	OzTRS
WiFi16	 399 	 333 	 532 	526
WiFi32	 479 	 399 	 639 	626
WiFi64	 559 	 466 	 745 	726
3G16	 499 	 416 	 665 	663
3G32	 579 	 483 	 772 	763
3G64	 659 	 549 	 879 	863

Note for the UK price you would need to factor in forex fees and some charges that the VAT refund scheme incurs.

Also I would factor in the ability to install stuff and use it on your trip unless you plan to take a laptop as well to install apps from the App store (which you could I guess do using the free wifi in the apple store.

 

[TonyHancock]

If I can hold out until May, I'll try to pick one up in the US. (Even though I can't justify buying one!!)

I bought my IPad 1 in the US last year.

 

[auspal]

Exellent advice, very much appreciated.

Great forum, so happy that I came upon it by chance.

 

[markis10]

Do note that if you exceed the $900 you have to pay tax on the total value including the first $900.
Some people around here will tell you* that they can see that you claimed a refund when you return and your immigration card is marked as such. So they know that you possibly have non-taxed goods with you.

*I don't have experience of this and can only repeat what has been reported

Customs runs TRS so the data sharing is a natural, though for an iPAD its not an issue, the cost of it once the fact is been used as far as Customs calculating its value goes will be quite lower than what as paid. The real issue is when people claim $3000-4000 notebooks or cameras then bring them back in, if not declared if will be noted.

 

[medhead]

I also wanted to mention that you can check the overseas prices by using the Apple website for the various countries. I checked the German price and it was more expensive that Australia, tax included.

Customs runs TRS so the data sharing is a natural, though for an iPAD its not an issue, the cost of it once the fact is been used as far as Customs calculating its value goes will be quite lower than what as paid. The real issue is when people claim $3000-4000 notebooks or cameras then bring them back in, if not declared if will be noted.

Thanks for the advice. ipad is totally not a problem due to the low price. Umm, I should ask you my import allowance question. But I won't go OT.

 

[simongr]

I also wanted to mention that you can check the overseas prices by using the Apple website for the various countries. I checked the German price and it was more expensive that Australia, tax included.

You can recover the VAT when leaving the EU though.

OF course, for entry to Australia, Alcohol has a completely separate allowance to the $900 allowance for goods.

I have removed the erroneous info. Thanks for the pick up

 

[medhead]

You can recover the VAT when leaving the EU though.

True. My problem is I can't remember the tax rate for German. It might be about 12% that you get back. Then I'm also too lazy to do the calculation.

BTW done some editing myself

 

[Febs]

The Australian prices are pretty reasonable, when you factor in taxes in the US. No doubt due in part to the very strong AUD, but considering the price disparities of previous years, I think the current prices are pretty decent.

Echo what everyone else says too re: TRS. Yes it counts towards your $900 limit on the way back, no they probably won't bother, yes you can claim some sort of depreciation on it if they do.

Cheers,
- Febs.

 

[opusman]

I'm waiting for the ipad 3 myself

 

[straitman]

I'm waiting for the ipad 3 myself

Do we have a proposed date for the iPad 3?


Sent from my iPhone using AFF Mobile

 

[MEL_Traveller]

re USA purchase v Australia purchase... the neew prices for ipad2 now mean it is pretty similar to buy in oz compared to the US (not so with the old prices for ipad1).

Prices in the US are quoted without sales and state taxes. Which will be anywhere from 6% upwards.

so far (after many years of travelling to the US) I am unaware of any tourist tax rebate scheme for the US.

Question tthough for those who know. If I buy an ipad in australia for business, I get the GST back anyway. How does that work with the tax refund scheme? I make my choice and get either one or the other I suppose? (with the tax refund at the airport being more immediate?)

 

[Skyring]

Do we have a proposed date for the iPad 3?

Just as soon as people stop buying iPad 2s, they will bring in the replacement and sales will soar!

 

[simongr]

Do we have a proposed date for the iPad 3?

Just as soon as people stop buying iPad 2s, they will bring in the replacement and sales will soar!

There are two schools of thought. There are rumors that iPad3 will be available this year (holiday seasonish). I think that is very unlikely given the rapid sales of iPad2 and structured update program that Apple have had on iOS devices for a number of years.

Also the competition is not that fierce that they NEED to update faster - there is only just recently a real rival product.

 

[pshepvic]

I predict we'll see iPad 3 in about 12 months. Give or take it's about 12 months since ipad 1. And it's always 12 months between iMac, MacBook, and iPhone models. Apple has a pretty regular and consistent release pattern each year so I doubt the ipad will be any different.

As far as comparing price to the US - if yout buy it in Oregon or Delaware it will be cheaper - no sales tax in those states. Although you do have to get there...