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Offshore to offshore supply of goods – BAS reporting

Goods that originate and remain outside Australia do not attract GST and do not need to be reported in activity statements.

Last updated 22 May 2017

Goods that you deliver from a place outside Australia to another place outside Australia do not attract GST and do not need to be reported at G2 and/or G3 in your activity statement.

Example: International supply of goods

Australian Company A sells goods to Australian Company B. The goods are shipped directly from Company A’s factory in China to Company B’s branch in Japan. This supply of goods does not attract GST so should not be included for GST purposes in the companies' activity statements.

End of example

We collect and share information and data with a number of external sources including the Department of Home Affairs. Reporting offshore to offshore transactions for GST purposes in your activity statement creates a discrepancy with data provided by DIBP and may lead to an investigation for compliance action.

You still include these sales as income in label T1 ‘PAYG Instalment Income’ in your activity statement but they should be coded to 'No Tax' in your GST accounts and not reported at labels G2 and/or G3 in your activity statement. We are aware of the different reporting obligations and will not question this discrepancy between your income tax return and your activity statement.

If you have mistakenly reported sales at labels G2 and/or G3 on your activity statement and have reported the wrong amount of GST, you will need to correct the error. If you have incorrectly reported supplies at labels G2 and/or G3, but there is no effect on GST payable, you do not need to do anything further. However, you should exclude these supplies and correctly report all sales at labels G2 and G3 on your future activity statements.

See also