Goods and Services Tax Determination

GSTD 2006/2W

Goods and services tax: does an Australian entity make a taxable supply when it supplies repair services under a warranty given by a non-resident manufacturer?

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FOI status:

may be released

Notice of Withdrawal

Goods and Services Tax Determination GSTD 2006/2 is withdrawn with effect from today.

1. GSTD 2006/2 states that a GST registered entity does not make a GST-free supply when it supplies repair services to a non-resident under a warranty given by a non-resident manufacturer:

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who is not in Australia when the repairs are done

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who acquires the repair services in carrying on its enterprise, but who is not registered or required to be registered, and

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the supply is provided, or is required to be provided under an agreement between the supplier and the non-resident manufacturer, to another entity in the indirect tax zone (ITZ).

2. This Determination is being withdrawn because section 3 and item 20 in Part 2 of Schedule 2 to the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 inserts section 38-191 into the GST Act. Section 38-191 of the GST Act applies in relation to working out net amounts for tax periods starting on or after 1 October 2016, subject to a transitional rule.^[1] The amendments ensure that a supply of a repair, renovation, modification or treatment of goods is GST-free if it is made to a non-resident that is not in the ITZ, therefore, GSTD 2006/2 no longer applies.

Commissioner of Taxation
25 January 2017

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously released as GSTD 2005/D3

References

ATO references:
NO 2205-6254

Related Rulings/Determinations:

TR 2006/10
GSTR 2001/8
GSTR 2004/7
GSTR 2005/6
GSTD 2006/1

Subject References:
Australia
carrying on a business
consumption outside Australia
GST-free
GST-free supplies
international
non-resident
not in Australia
recipient
registered
required to be registered
services
supplier
supplies of things other than goods or real property
taxable supplies

Legislative References:
ANTS(GST)A 1999 9-5
ANTS(GST)A 1999 38-190(1)
ANTS(GST)A 1999 38-190(3)
TAA 1953 Sch 1 Div 358