My supplier overseas intends to send me an item to replace the one I had sent back to them for repair under a temporary export permit as it was covered under a warranty. Is GST payable on the replacement item?

Question

Accepted Answer

Yes, GST is payable on replacement goods. Please declare an In-Payment (GST) permit to account for the importation of the replacement good. You may submit a commercial invoice and indicate "value for Customs purpose only" together with the permit application. Please also note that "value for Customs purposes" usually indicates that there is no sale of goods. However, the importer must be able to explain how the commercial value was determined and maintain trade documents to substantiate the value. You may wish to refer to Customs Circular 09/2012 on valuation of replacement goods declared for GST purposes.

My supplier overseas intends to send me an item to replace the one I had sent back to them for repair under a temporary export permit as it was covered under a warranty. Is GST payable on the replacement item?

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