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Edited version of private ruling
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Ruling
Subject: GST and attribution of input tax credit on creditable importation
Question:
Are you able to attribute input tax credits to the relevant tax periods for creditable importations you have made?
Advice/Answers:
No, you are not able to attribute input tax credits to the relevant tax periods for creditable importations you have made.
Relevant facts:
Entity A is registered for goods and services tax (GST) for multiple years. Entity B is registered for GST since around the same time.
Entity A and B both report GST quarterly on a non-cash basis. Entity A and B are part of the same overseas corporate group. Entity A and B import equipment and clothing. Entity A and B import these goods separately and are not in partnership together. Entity A were the original importers and then Entity B was established and started importing the same goods. There was an overlap period where both entities were importing but separate from each other.
When the goods are imported they are stored at a third parties warehouse until the franchisees in Australia request orders. At that point, a supply is made from Entity A or Entity B to the franchisee.
Entity A and Entity B have stated that they are causing the goods to be brought to Australia and are the importer of the goods. Entity A and Entity B contracted with a freight forwarder.
There was no deferral of payment of GST on the taxable importations.
Reasons for decision
Under subsection 29-15(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) the input tax credit to which you are entitled for a creditable importation is attributable to the tax period in which you pay the GST on the importation. However, under subsection 29-15(2) of the GST Act, if paragraph 33-15(1)(b) of the GST Act applies to payment of the GST on the importation, the input tax credit is attributable to the tax period in which the liability for the GST arose.
In this case, paragraph 33-15(1)(b) of the GST Act does not apply.
Goods and Services Tax Ruling GSTR 2003/15 discusses importation of goods into Australia and claiming input tax credits. Paragraph 292 of GSTR 2003/15 states:
292. A tax invoice is not required for a creditable importation. Tax invoices are only required for taxable supplies. A copy of the entry for home consumption for a taxable importation is evidence for the purposes of substantiating a claim for the input tax credit. If the entry for home consumption does not show the entity that imported the goods as the 'owner', the importing entity needs to also have evidence that it paid GST in order to claim the input tax credit. This may be in the form of evidence of payment of an invoice for reimbursement of the GST paid on the importer's behalf by another party, together with evidence showing that the 'owner' as per the customs entry was acting as agent for the importing entity.
You stated that you imported goods for the relevantperiod. However, the freight forwarder was named as the 'owner' on the customs documentation. You have provided some evidence that you reimbursed the freight forwarder for the GST paid on entry into Australia, however there is no evidence that the freight forwarder was named as owner in acting as agent for yourself. As such, it is not considered that you have the necessary documentation to attribute the input tax credit under subsection 29-15(1) of the GST Act.
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