Sales Tax Bulletin - No. 33

STB 33

Tax free sales to tourists

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Date of Issue: 1 June 1997

Valid from 1 June 1997

About this bulletin

This bulletin explains the rules which must be followed under the sales tax law when making sales to eligible foreign travellers. It does not apply to sales made to other travellers through the 'sealed bag' system. For more information about sales to other travellers please refer to the booklet titled 'Sales Tax - How to make export sales to overseas travellers'.

If after reading this bulletin you need more information contact the Tax Office on 13 28 66 for the cost of a local call.

Who are eligible foreign travellers?

Eligible foreign travellers are foreign nationals who have entered Australia on Class TN, Class UB, Class TR or Class TS visitor visas or who have been issued with an electronic travel authority (ETA).

Who are NOT eligible foreign travellers?

The following people are not eligible foreign travellers:

• • Australia citizens and other people living in Australia;

• • people holding Australian passports;

• • people holding foreign passports with visas other than visitor visas, e.g., overseas students, diplomatic staff and working holiday makers;

• • people holding foreign passports living in Australia; and

• • people holding foreign passports who have been exempted from having to get a visa to enter Australia, e.g., New Zealand citizens and permanent residents of Norfolk Island.

Those travellers who do not qualify as eligible foreign travellers can only purchase tax free goods through the 'sealed bag' system.

What rules must be followed when selling to eligible foreign travellers?

The following rules (incorporating changes which commenced on 11 September 1996) must be followed when selling to eligible foreign travellers:

• 1) You must sight:

  • • the customer's ticket for travel from Australia to a foreign destination and either:

    • - the customer's visitor visa; or

    • - where no visa label is present, a passport indicating that the purchaser is a national of an ETA country. Countries which are currently part of the ETA system are listed below; or

  • • a foreign visitor tour group list.

• 2) The customer must complete an Export Sales - Foreign Visitor Declaration. The declaration will include details of the purchase, the customer's intended journey and statements confirming the customer's travel status. A copy of this declaration is shown on page 3.

• 3) You must issue an invoice in duplicate at the time of the sale, giving a full description of the goods, in such a way that it cannot subsequently be altered.

• 4) You must retain the declaration, a copy of the invoice and:

  • • a copy of the purchaser's ticket for travel from Australia to a foreign destination and either

    • - a copy of the purchaser's Australian visitor visa; or

    • - where the traveller holds an ETA, a copy of the page or pages of the purchaser's passport which contains the personal particulars of the purchaser (including a photograph) and which identifies the issuing state; or

  • • a copy of a foreign visitor tour group list.

• 5) You may only deliver the goods to the traveller within 30 days of the date of departure shown on the traveller's ticket. (Note: If the traveller has an 'open ticket', you cannot sell goods free of sales tax under this system.

This list may be amended as future countries are added to the system.

Do you need more information?

If you have any questions or need more information about how sales tax applies to you, please contact your local Tax Office:

ATO references:
NO NAT 2477.6.97