Claiming Tax Deductions on International Purchases

ihavok on 31/08/2020 - 10:22

Hi everyone,

I'm interested in purchasing an item online from the US-based manufacturer directly. This item is intended for work purposes.

Normally, I could get the same product here, but its been out of stock for a while locally.

If I were to purchase this item from overseas, would I still be able claim this as a work-related expense against my personal income tax?

Thanks for your advice!

Additional Info:
- Did check the ATO pages, but they don't seem to cover this specific scenario (one page covers GST claims for business tax, etc)
- Have always heard this discussed casually but couldn't find any concrete info on this. Does anyone have personal experience with this perhaps?
- Record keeping : Obviously, the supplied invoice wouldn't have an ABN. I'm going to assume the invoice I get from the manufacturer will be sufficient, maybe add in a credit card statement as well.

Financial

Comments

  • GG57 on 31/08/2020 - 10:38
    +3

    AFIK, if it satisfies the definition of a work-related expense, you can claim it regardless of where you sourced it from. That may be different if it is a capital expense rather than an opex.
    Obviously keep the overseas currency cost and conversion details for reference.

  • [Deactivated] on 31/08/2020 - 10:41

    Is this item <$100

  • apsilon on 31/08/2020 - 11:14
    +1

    Yes, I've done it several times. My accountant handles it all so I can't recall if the value was what I was actually charged in AUD$ on my card or the value converted to AUD$ on the date of purchase.

    • netjock on 31/08/2020 - 11:56
      +1

      Would be what you paid in the end.

      You can't claim for an amount that would have cost more IF you had been so lucky to have paid for it.

      • apsilon on 01/09/2020 - 11:12

        The amount actually charged to your card is almost always more than a direct currency conversion. Few if any credit card providers will give you the actual currency rate, it's usually a few cents in their favour.

  • Seraphin7 on 31/08/2020 - 11:37
    +1

    I've done this occasionally with no problem. You will be fine so long as you keep all relevant receipts, etc.

  • JimmyF on 31/08/2020 - 11:55
    +1

    If I were to purchase this item from overseas, would I still be able claim this as a work-related expense against my personal income tax?

    If you have a invoice, then yes.

    If it was a business return, there is no GST component to claim, but as its a personal return, this isn't matter.

  • brad1-8tsi on 31/08/2020 - 12:00
    +1

    I've done this several times.

    I paid on my CC and attached a copy of the CC statement to the foreign currency invoice and kept it in my tax file. It's never been questioned.

  • ihavok on 31/08/2020 - 19:05

    Thank you to everyone for the advice! This helps a lot :-)

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