GST and sales to external territories

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Terms we use

When we say:

• sale, we are referring to the GST term ‘supply’
• purchase, we are referring to the GST term ‘acquisition’.

Are sales to external territories GST-free?

Norfolk, Christmas and the Cocos (Keeling) Islands are Australian external territories and they are not part of Australia for GST purposes.

Under GST law, if you sell goods to residents of these territories the goods are GST-free where you meet the export requirements. Alternatively, you can sell goods under the tourist refund scheme or sealed bag system.

For more information about the tourist refund scheme (TRS) and the sealed bag system, refer to Making GST-free sales to travellers departing Australia (NAT 7378).

If you provide services to residents of these territories, the services may be GST-free where you perform the service for them while they are not in Australia. Other services may also be GST-free and we recommend you check with us if you are not sure about a service you provide.

When are supplier exports GST-free?

You can sell goods GST-free if you export goods from mainland Australia within 60 days of receiving payment for the goods or issuing an invoice for the goods you supplied, whichever is earlier.

You must keep records to show that you have exported the goods, for example, documents from Australia Post, a shipper or freight forwarder showing that you are the supplier and the destination is an external territory.

When are purchaser exports GST-free?

If the purchaser exports the goods, you, as the supplier, will be regarded as having exported the goods from Australia if all of the following conditions are met:

• You obtain a written declaration from the purchaser that they are not registered or required to be registered for GST or you check that they are not registered on the Australian Business Register at www.abr.gov.au. If the exporter is the purchaser’s agent, the purchaser must also give you evidence of an agency agreement.
   
• The purchaser exports the goods from the mainland and you obtain documents that show the purchaser has lodged an export entry with the Australian Customs Service (Customs). If the goods are being mailed to the external territory, the purchaser must ensure that a copy of any Customs document attached to the parcel is obtained from Australia Post. You must retain a copy of this document.
   
• The purchaser entered the goods for export and customs gave them an export entry advice. This form includes an export entry advice number (also called an export declaration number or EDN). You must obtain and keep a copy of the export entry advice to prove it has been entered into the Customs system for export.
   
• The goods have not been altered or used in any way, except to prepare them for export – you must obtain evidence, such as a written declaration by the purchaser, to prove this.
   
• There is enough documentary evidence to show that the purchaser exported the goods, for example invoices, bills of lading or other transport documents and evidence from:
• Customs in Australia, or
• the external territory.
   
• The goods were exported within 60 days from the date you received payment for the goods or issued the invoice, whichever is earlier.

You can also provide the goods GST-free on the basis that the purchaser will give you these documents once the goods are exported.

Or, you may be willing to refund the GST to the purchaser once they have exported the goods and given you these documents. You can then make an adjustment to your BAS to reflect the refund you paid if you pay it in a different tax period.

Under GST law, you do not have to sell the goods GST-free or provide a refund. However, you may have to provide a refund under other laws that may apply to the transaction. For example, you may have to provide a refund under your contract with the purchaser. We recommend you discuss this issue with the purchaser before completing the transaction.

We cannot directly reimburse the purchaser for any GST they pay.

More information

For more information about selling goods and services to residents of Australian external territories phone us on 13 28 66.

Last Modified: Friday, 30 May 2008