• 15.e. Is a warranty claim made by a manufacturer/importer on an overseas manufacturer a taxable supply?

    For source of ATO view, refer to:

    • paragraphs 56 - 69 of GSTR 2003/7External Link - Goods and services tax: what do the expressions 'directly connected with goods or real property' and 'a supply of work physically performed on goods' mean for the purposes of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999?
    • GSTR 2005/6External Link - Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999.

    Where the manufacturer/importer makes a claim under a warranty provided by an overseas manufacturer it may not be a taxable supply, depending on the factual circumstances if:

    • no consideration is provided
    • there is no supply
    • the supply is not connected with Australia, or
    • the supply would be GST-free.

    A supply is not GST-free if it is made to a non-resident but that supply is provided, or the agreement requires it to be provided, to another entity in Australia.

    Refer to GSTR 2005/6External LinkGoods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than real property) made to non-residents that are otherwise GST-free under item 2 of the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999, see paragraphs 484-491 - (Example 21).

      Last modified: 07 Jun 2012QC 16411