ATO Interpretative Decision
ATO ID 2001/646
Goods and Services Tax
GST and investigation services directly connected with goods situated outside AustraliaFOI status: may be released
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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, making a GST-free supply under item 1 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies investigation services to another Australian resident and the services are directly connected with goods situated outside Australia?
Decision
Yes, the entity is making a GST-free supply under item 1 in the table in subsection 38-190(1) of the GST Act when it supplies investigation services to another Australian resident and the services are directly connected with goods situated outside Australia.
Facts
The entity is an Australian resident. The entity supplies investigation services to another Australian resident. The services are carried out overseas and include conducting an investigation into machinery, repossessing the machinery and bringing it back to Australia.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Subsection 38-190(1) of the GST Act makes certain supplies of things other than goods or real property, for consumption outside Australia GST-free. The supply of the investigation services is a supply of a thing other than goods or real property. Therefore, it is appropriate to consider the GST status of this supply under subsection 38-190(1) of the GST Act.
Item 1 in the table in subsection 38-190(1) of the GST Act (Item 1) provides that a supply of things other than goods or real property that is directly connected with goods or real property situated outside Australia is GST-free.
In this case, the services performed overseas involve conducting an investigation relating to machinery, repossessing it and bringing it back to Australia. These services are considered to be services directly connected with goods situated outside Australia. Therefore, the supply by the entity meets the requirement in Item 1.
As such, the entity is making a GST-free supply under Item 1 when it supplies investigation services to another Australian resident and the services are directly connected with goods situated outside Australia.
Date of decision: 6 November 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-190(1)
subsection 38-190(1) table item 1
Keywords
Goods & services tax
Consumption outside Australia
GST free
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 6 November 2001 | Original statement |
| 12 August 2005 | Archived |
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