VAT refund in Australia: What is Tourist Refund Scheme (TRS)? A complete guide to tax-free shopping in Australia

Is Australia on your travel bucket list this year? Australia has something for everyone, from iconic beaches to vibrant cities and breathtaking natural beauty. But travelling to Australia can get very expensive! So when you're busy planning your trip to Australia, you will also need to consider how to maximise your spending during your visit.

The good thing is with Australia's Tourist Refund Scheme (TRS), you have an amazing opportunity to claim back your Australian VAT refund so you can save money. This article gets you one step closer to your affordable vacation in Australia by detailing your options for VAT refund with TRS as a UK resident. Get ready to explore the details of claiming VAT at the airport and enjoying the advantages of the TRS!

If you are looking for one more smart way to save even more, read this article and find out about Wise!

How much is VAT in Australia?

The VAT in Australia is often referred to as the Goods and Services Tax (GST). In this article, you will see VAT and GST are used interchangeably, and they mean the same thing. The GST in Australia is 10%¹, which is applied to most goods and services sold or consumed in Australia. And when you purchase wine, there is also a wine equalisation tax (WET), which is a tax of 29% of the wholesale value of wine³. Sometimes, you will also see goods that are GST-free or are exempt from GST. You can refer to this table if you are unsure about the tax bracket for your goods and services:

How much VAT is refunded in Australia?

Unlike many other countries where it is tough to determine how much VAT is refunded, you can estimate the VAT refund by dividing the total price of goods by 11. This gives you an approximate amount because you may need to round the number and consider additional factors like handling fees and foreign exchange fees, which can affect the actual refund you receive.

For example, if you spend a total of 1100 AUD (including GST), you can estimate the GST refund by dividing 1100 by 11, which gives you around 100 AUD back.

But if you claim back WET for your purchase of wine, you might be able to get back 23.59% of the price of wine under the TRS scheme.

Who is eligible for tax free shopping in Australia?

TRS is open to both overseas travellers and Australian residents. However, you still need to meet these requirements to be eligible for tax-free shopping in Australia⁴:

• You are not an airline crew member who is on duty;
• You pay for the goods yourself, and your purchase must be for personal use, not for any business purposes;
• Your purchase costs at least 300 AUD, including GST. A “purchase” is defined as an item or a set of goods bought from a supplier with the same Australian Business Number; and
• You must take the goods in your personal luggage within 60 days from the date of purchase.

There are additional restrictions to consider even if you meet all of the above requirements. Due to their nature, some specific goods are not reimbursable. You cannot claim a GST refund for such as⁴:

• Alcohol (except wine with alcohol content less than 22%);
• Tobacco and tobacco products;
• Flammable goods such as liquids, gas cylinders and fireworks
• Food, drinks, or perfume that are wholly or partially consumed in Australia;
• Hair implants, dental work / implants, hair extensions and breast implants
• Gift cards and vouchers;
• Freighted and posted goods unless the goods are being exported to an External Australian Territory by a resident of that territory;
• GST-free goods; and
• Services.

How to claim GST refund in Australia?

You now have all the general information about TRS as well as Australia’s GST refund requirements. There are a few other steps you need to take to receive your Australian GST refund:

Receive a valid tax invoice

When you shop in Australia, make sure that you shop at the store that is in the TRS. You can either look for a "TRS" logo/sign displayed at the shop or just ask the sales assistants directly to see if your purchase is eligible.

Before leaving the shop, remember to take the tax invoice with you. The tax invoice must contain the following information⁴:

• The title shows that this is a tax invoice;
• The seller's information: business name and address;
• The seller's Australian business number (ABN);
• The date the invoice was issued;
• A brief description of the goods sold, including the quantity (if applicable) and the price; and
• Total price including GST (sometimes price of product and the GST will be shown separately.

If your total purchase is at least 1,000 AUD, the invoice must include your personal identity information, which should also match your personal document.

Claiming a GST refund at airport

You can claim a GST refund in Australia by lodging a TRS claim through Mobile or Web Applications. After filling out the claim, you will receive an auto-generated QR code. You still need to present your goods, passport, boarding pass, original tax invoices, and the QR code to the TRS Facility. So make sure you have everything with you in your carry-on luggage.

If you plan to claim a GST tax refund in Australia for powders, liquids, aerosols, gels, and/or oversized goods (such as golf clubs) that you cannot take on board, you will need to claim this before you check in your luggage. Head to The Australian Border Force (ABF) Office for verification.

For other goods, you must do your GST refund after you go through Customs. Look for the TRS office to assist you with verification. A TRS Facility should be open for every international departure. If the TRS Facility is closed, you can also contact the ABF Officer for further assistance.

If you plan to do your GST refund at the Sydney Airport, you can find the TRS office to the right of the Heinemann Duty-Free entrance after going through Passport Control and Security⁵.

There’s also a paper form if you don’t want to file your claims digitally. You can get the TRS Claim Form from an ABF officer at the TRS Facility or some participating stores. This form can also be used if you need to use a drop box.

After checking your eligibility, the office will stamp your invoices with either a processed or rejected stamp.

Obtain a GST refund

That is the whole process of how to claim a GST refund in Australia! Now, you can receive your Australian GST refund money. However, you cannot get a GST refund in cash. Instead, you have the following refund options: through your Australian bank account, personal credit card, or by cheque. You should expect to receive your money within 60 days of the claim being lodged.

Whether you are exploring the breathtaking Great Barrier Reef, enjoying the beautiful beaches of Lucky Bay, or indulging in the diverse cuisine of Sydney, Australia promises an unforgettable experience for all Brits. And with this comprehensive guide on how to claim a GST refund in Australia, you can unlock extra savings for your next adventure. Here's some great news you won't want to miss: you can save even more with Wise!

So, as a Brit, you can receive a GST refund with your credit card! However, it's important to note that if the currency of your card (e.g., GBP) is different from the local currency (e.g., AUD), it may be automatically converted. Your card provider typically chooses the conversion rate with a hidden markup.

To minimise costs on a currency conversion, consider receiving your refund with a Wise debit card, which only charges a small fee and converts at mid-market rates without markups if a conversion occurs, and allows you to hold 40+ currencies, including AUD. Order your Wise card for a one-time fee of 7 GBP today!

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Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

Sources used for this article:

Sources last checked on 26-Jul-2024.