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Edited version of your written advice
Authorisation Number: 1051292655987
Date of advice: 10 October 2017
Ruling
Subject: GST and supply of goods that are brought to Australia
Question 1
Is the importation of the goods that are brought to Australia a taxable importation made by you under section 13-5 of the A New Tax system (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No.
Under subsection 13-5(1) of the GST Act you make a taxable importation if goods are imported and you enter the goods for home consumption (within the meaning of the Customs Act 1901).
Goods and Services Tax Ruling GSTR 2003/15 provides guidance on the importation of goods.
According to GSTR 2003/15, an entity imports goods into Australia when they are registered as the ‘owner’ of the goods in the import declaration that needs to be completed and submitted to the Department of Immigration and Border Protection (DIBP) when the goods are entered into Australia. The owner is liable to pay GST on the taxable importation before the goods are released by DIBP.
In the import declaration we received you are not registered as the owner of the goods that are brought to Australia. In this instance you have not made a taxable importation.
Question 2
Is the supply of goods that are brought to Australia by you to your customer a taxable supply under the GST Act?
Answer
No.
One of the requirements for a supply of goods to be a taxable supply is that the supply of goods is connected with Australia.
In regard to a supply that involves goods being brought to Australia, the supply of goods is connected with Australia where the supplier imports the goods into Australia.
You do not import the goods that are brought to Australia since in the import declaration you are not registered as the owner of the goods. In this instance, your supply of goods to your customer is not connected with Australia and therefore, your supply of goods is outside the scope of GST.
Relevant facts and circumstances
You are an Australian company and are registered for the goods and services tax (GST).
You have entered into a contract with a customer in regard to supplying the latter with goods which will be brought from overseas.
An overseas company ships the goods to Australia and invoices your customer for the supply of these goods.
The Bill of lading shows that the consignee is your customer. In the import declaration given to the DIBP, you are not registered as the owner of the goods.
Relevant legislative provisions
A New Tax system (Goods and Services Tax) Act 1999 section 9-25
A New Tax system (Goods and Services Tax) Act 1999 section 13-5
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