ATO Interpretative Decision
ATO ID 2001/467 (Withdrawn)
Goods and Services Tax
GST and goods sent overseasFOI status: may be released
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The ATO view for this issue is covered in Goods and Services Tax Ruling GSTR 2002/6.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 26 August 2005
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, an individual, entitled to input tax credits under section 11-20 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) or a refund of the goods and services (GST) paid under section 168-5 of the GST Act, when it pays GST on the purchase of goods that it sends overseas by post?
Decision
No, the entity is not entitled to input tax credits under section 11-20 of the GST Act or a refund of the GST paid under section 168-5 of the GST Act when it pays GST on the purchase of goods that it sends overseas by post.
Facts
The entity is an individual. The entity purchases goods that it sends overseas by post. The entity is not carrying on an enterprise.
The entity is not registered or required to be registered for GST. The supply of the goods to the entity was a taxable supply under section 9-5 of the GST Act.
Reasons for Decision
Under section 11-20 of the GST Act, an entity is entitled to an input tax credit for a creditable acquisition that it makes.
The acquisition must be for a creditable purpose (paragraph 11-5(a) of the GST Act). Subsection 11-15 (1) of the GST Act provides that a thing is acquired for a creditable purpose to the extent that it is acquired in carrying on an enterprise. As the entity is not carrying on an enterprise, the acquisition of the goods is not for a creditable purpose and paragraph 11-5(a) of the GST Act is not satisfied.
Section 11-5 of the GST Act sets out the requirements for a creditable acquisition. One of the requirements is that the entity making the acquisition must be registered, or required to be registered for GST (paragraph 11-5(d) of the GST Act). In this case, as the entity is not registered for GST, paragraph 11-5(d) of the GST Act is not satisfied.
Therefore, the entity is not entitled to an input tax credit under section 11-20 of the GST Act for the GST that is included in the purchase of the goods.
Under section 168-5 of the GST Act, an entity may be entitled to a refund of the GST paid on goods purchased if the entity takes the goods overseas as accompanied baggage.
As the entity is posting the goods overseas and is not taking the goods overseas as accompanied baggage, it is not entitled to a refund under section 168-5 of the GST Act.
Therefore, the entity is not entitled to an input tax credit under section 11-20 of the GST Act nor is it entitled to a refund of the GST paid under section 168-5 of the GST Act, when it pays GST on the purchase of the goods that it sends overseas by post.
Date of decision: 10 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
section 11-5
paragraph 11-5(a)
paragraph 11-5(d)
subsection 11-15(1)
section 11-20
section 168-5
Keywords
Goods and services tax
GST registration
GST refunds
GST tourist refund scheme
Creditable acquisition
Creditable purpose
GST enterprise
ISSN: 1445-2782
| Date: | Version: | |
| 10 August 2001 | Original statement | |
| You are here → | 26 August 2005 | Archived |