Four-year time limit for claiming indirect tax refunds
For tax periods starting before 1 July 2012, your entitlement to an outstanding indirect tax refund (other than an entitlement relating to overpaid indirect tax on an importation) will expire four years from the end of the tax period to which the refund relates unless either of the following applies:
- You notify us of your entitlement to the refund during the four-year period.
- We notify you of your entitlement to the refund during the four-year period.
To ensure you can claim any outstanding indirect tax refund you are entitled to for a given tax period, you must do either of the following within four years of the end of that tax period:
- lodge your refund claim in an activity statement
- notify us of your entitlement to the refund.
Cam from Cam's Catering recently reviewed his activity statement for the tax period ending 31 March 2007. He realised that due to a clerical error, he reported too much GST on his taxable sales. As a result, he overpaid $500 net GST for the tax period. To ensure he can claim his $500 refund, Cam must do one of the following by 31 March 2011:
End of example
- lodge his refund claim in an activity statement
- notify us of his entitlement to the refund.
For tax periods starting on or after 1 July 2012, the time limit for claiming indirect tax refunds is replaced by a period of review in which an assessment may be amended.
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Refunds of overpaid indirect tax on importations
For tax periods starting before 1 July 2012, the four-year limit for a refund of indirect tax relating to an importation expires four years after the date of the importation. For example, if you overpaid GST on goods that you imported on 3 July 2008 then you have until 3 July 2012 to claim your refund.
For tax periods starting on or after 1 July 2012, the four-year limit for an indirect tax refund relating to an importation ends four years from the day after the notice of assessment was given to you.