A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions  

Part 3-1 - Supplies that are not taxable supplies  

Division 38 - GST-free supplies  

Subdivision 38-E - Exports and other cross-border supplies  

38-190   Supplies of things, other than goods or real property, for consumption outside the indirect tax zone  

(1)    


The third column of this table sets out supplies that are GST-free (except to the extent that they are supplies of goods or * real property ):


Supplies of things, other than goods or real property, for consumption outside the indirect tax zone
Item Topic These supplies are GST-free (except to the extent that they are supplies of goods or *real property) …
1 Supply connected with property outside the indirect tax zone a supply that is directly connected with goods or real property situated outside the indirect tax zone.
2 Supply to *non-resident outside the indirect tax zone a supply that is made to a *non-resident who is not in the indirect tax zone when the thing supplied is done, and:
(a)   the supply is neither a supply of work physically
    performed on goods situated in the indirect tax zone
    when the work is done nor a supply
    directly connected with *real property
    situated in the indirect tax zone; or
(b)   the *non-resident acquires the thing in *carrying
    on the non-resident ' s *enterprise, but is not
    *registered or *required to be registered.
3 Supplies used or enjoyed outside the indirect tax zone a supply:
(a)   that is made to a *recipient who is not in the indirect
    tax zone when the thing supplied is done; and
(b)   the effective use or enjoyment of which takes
    place outside the indirect tax zone;
    other than a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with *real property situated in the indirect tax zone.
4 Rights a supply that is made in relation to rights if:
(a)   the rights are for use outside the indirect tax zone; or
(b)   the supply is to an entity that is not an *Australian
    resident and is outside the indirect tax zone when the
    thing supplied is done.
5 Export of services used to repair etc. imported goods a supply that is constituted by the repair, renovation, modification or treatment of goods from outside the indirect tax zone whose destination is outside the indirect tax zone.


(2)    


However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST-free if it is the supply of a right or option to acquire something the supply of which would be * connected with the indirect tax zone and would not be * GST-free .

(2A)    


A supply covered by any of items 2 to 4 in the table in subsection (1) is not * GST-free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of * real property situated in the indirect tax zone that would be, wholly or partly, * input taxed under Subdivision 40-B or 40-C .
Note:

Subdivision 40-B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40-C deals with the sale of residential premises and the supply of residential premises by way of long-term lease.


(3)    


Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST-free if:


(a) it is a supply under an agreement entered into, whether directly or indirectly, with a * non-resident ; and


(b) the supply is provided, or the agreement requires it to be provided, to another entity in the indirect tax zone; and


(c) for a supply other than an *input taxed supply - none of the following applies:


(i) the other entity would be an *Australian-based business recipient of the supply, if the supply had been made to it;

(ii) the other entity is an individual who is provided with the supply as an employee or *officer of an entity that would be an Australian-based business recipient of the supply, if the supply had been made to it; or

(iii) the other entity is an individual who is provided with the supply as an employee or officer of the *recipient, and the recipient ' s acquisition of the thing is solely for a *creditable purpose and is not a *non-deductible expense.

(4)    


A supply is taken, for the purposes of item 3 in that table, to be a supply made to a * recipient who is not in the indirect tax zone if:


(a) it is a supply under an agreement entered into, whether directly or indirectly, with an * Australian resident ; and


(b) the supply is provided, or the agreement requires it to be provided, to another entity outside the indirect tax zone.


(5)    


Subsection (4) does not apply to any of the following supplies:


(a) a transport of goods within the indirect tax zone that is part of, or is connected with, the *international transport of the goods;


(b) a loading or handling of goods within the indirect tax zone that is part of, or is connected with, the international transport of the goods;


(c) a service, done within the indirect tax zone, in relation to the goods that facilitates the international transport of the goods;

Example:

The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.


(d) insuring transport covered by paragraph (a);


(e) arranging transport covered by paragraph (a), or insurance covered by paragraph (d).

Note:

The supply might still be GST-free under item 5, 5A, 6 or 7 in the table in subsection 38-355(1) .





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