Generally, auctioneers provide their services to you when selling animals on your behalf. Prior to the auction, the auctioneer will need to know whether you are registered for GST or not. This is because sales are only subject to GST if the vendor is registered or required to be registered for GST.
Before an auction begins, the auctioneer needs to advise bidders:
- of the registration status of the vendor
- whether the animal being sold is subject to GST, and if so
- how the GST will be calculated.
This information may be communicated via catalogue or a verbal announcement before the auction.
If the vendor is an ownership group, it is possible that part of the group may be registered for GST whilst the remainder of the group may not (see More than one entity supplying an animal). In this instance, the auctioneer must be advised of the correct percentage of GST-registered ownership of the animal.
Animal sales at auction
All animals sold at auction must have GST included in the final sale price where they are sold by an entity that is registered or required to be registered for GST. If an animal is sold to someone who exports the animal within the 60-day time limit, the sale may become a GST-free export if certain conditions are met (see Exports).