ATO Interpretative Decision
ATO ID 2002/532 (Withdrawn)
Goods and Services Tax
GST and the supply of repair services to a non-residentFOI status: may be released
-
This ATO ID is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 16 September 2005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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 Australian resident repairer of goods, making a GST-free supply under item 5 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it receives goods from a non-resident customer, repairs those goods in its workshop in Australia, and then returns those goods overseas to the non-resident customer?
Decision
Yes, the entity is making a GST-free supply under item 5 in the table in subsection 38-190(1) of the GST Act when it receives goods from a non-resident customer, repairs those goods in its workshop in Australia, and then returns those goods overseas to the non-resident customer.
Facts
The entity is an Australian resident repairer of goods. The entity supplies repair services from its workshop in Australia. The entity receives damaged goods from a non-resident customer that is located overseas. The entity repairs those goods in its workshop in Australia and then returns those goods to their customer overseas, via the post.
The non-resident customer is not registered or required to be registered for goods and services tax (GST). The entity is registered for GST.
Reasons for Decision
Under section 38-190 of the GST Act, certain supplies of things other than goods or real property, for consumption outside of Australia, are GST-free. As a supply of repair services is not considered to be a supply of goods or real property, its GST status is appropriately considered under section 38-190 of the GST Act.
Item 5 in the table in subsection 38-190(1) of the GST Act (Item 5) provides that a supply is GST-free if it is a supply that is constituted by the repair, renovation, modification or treatment of goods from outside Australia whose destination is outside Australia.
The entity receives the damaged goods from its customer outside Australia, repairs those goods in its workshop in Australia, and then returns those goods to the customer overseas. Therefore, the supply meets the requirements outlined in Item 5.
Accordingly, the supply by the entity of the repair service is GST-free under Item 5 of the GST Act.
Date of decision: 18 December 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-190
subsection 38-190(1) table item 5
Keywords
Goods & services tax
GST-free
GST international services
Consumption outside Australia
Export of services used to repair imported goods
ISSN: 1445-2782
| Date: | Version: | |
| 18 December 2001 | Original statement | |
| You are here → | 16 September 2005 | Archived |