Coco Hou: Can you claw back some of the tax paid when overseas for work or a holiday?

Whether you're attending a business conference in Singapore, working remotely from Fiji, or simply enjoying a holiday abroad, it's common to wonder if the tax you pay in another country can be claimed back or offset when you return to Australia.
 

According to Coco Hou, CPA and CEO of Platinum Accounting Australia, the answer depends on the type of tax, the purpose of your trip and the country's refund rules.
 

Hou explained that Australians often confuse two very different issues, foreign income tax and sales taxes such as GST or VAT.
 

If you earn money overseas, whether it's through employment, business or rental income, you must declare it in your Australian tax return if you are a resident for tax purposes. In many cases, Australia's double tax agreements with other countries allow you to claim a foreign income tax offset, which reduces your Australian tax liability by the amount of tax you've already paid overseas. However, not all countries have these agreements, which can make the process more complex and sometimes require you to lodge a refund claim directly with the foreign tax authority.
 

What about hotels, meals and shopping?
 

When it comes to everyday travel spending such as hotel stays, meals and shopping, the situation is very different.
 

"Australians cannot claim back overseas sales taxes like GST or VAT through the Australian Tax Office.
 

"If you're in Singapore for a conference and you pay GST on your hotel room, meals or transport, you can't reclaim that from the ATO," she said.
 

"However, if the trip is work-related, you can usually claim the total expense including the foreign tax as a deduction in your Australian tax return."
 

Tourist refund schemes in Singapore and Fiji
 

Some countries, including Singapore and Fiji, offer tourist refund schemes for certain purchases, but these generally only apply to goods that you physically take out of the country, not services.
 

"In Singapore, visitors can get GST back on eligible retail purchases if they meet minimum spend requirements, buy from participating stores and complete the paperwork at the airport," Hou said.
 

"Fiji has a similar VAT refund program, again limited to goods purchased in approved outlets and exported within a short timeframe. Accommodation, meals and most services remain ineligible for any refund under these schemes."
 

Why planning ahead matters
 

Hou stressed the importance of understanding the difference before travelling, especially for business purposes.
 

"I've had clients who assumed they could claim back foreign GST on all their trip expenses, only to be disappointed at tax time," she said.
 

"It's essential to know the rules in the country you're visiting, keep every receipt and plan ahead so you can maximise what you are legitimately entitled to."
 

She added that while you can't recover foreign sales taxes from the ATO, you can still receive a tax benefit if the expense is directly related to your income-earning activities.
 

"The key is knowing the right way to structure your claims so you stay compliant while reducing your tax bill," Hou said.
 

About Platinum Accounting Australia
 

Platinum Accounting Australia is a leading national accounting firm that has been operating in Australia since 2008. With a national footprint, the business offers a broad range of services for individuals and businesses of all sizes including tax planning, accounting, advisory and bookkeeping. Platinum Accounting Australia also offers a highly popular and growing licensee program for bookkeepers and accountants to assist them to grow as part of a respected national network.

www.platinumaccg.com.au