A New Tax System (Goods and Services Tax) Act 1999
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View history noteSubdiv 38-E heading substituted by No 52 of 2016, s 3 and Sch 2 item 18, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26 . The heading formerly read:
Subdivision 38-E - Exports and other supplies for consumption outside the indirect tax zone
Subdiv 38-E heading amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " , applicable to a tax period that commences on or after 1 July 2015.
The third column of this table sets out supplies that are GST-free (except to the extent that they are supplies of goods or * real property ):
| Supplies of things, other than goods or real property, for consumption outside the indirect tax zone | ||
| Item | Topic | These supplies are GST-free (except to the extent that they are supplies of goods or *real property) ... |
| 1 | Supply connected with property outside the indirect tax zone | a supply that is directly connected with goods or real property situated outside the indirect tax zone. |
| 2 | Supply to *non-resident outside the indirect tax zone | a supply that is made to a *non-resident who is not in the indirect tax zone when the thing supplied is done, and:
(a) the supply is neither a supply of work physically performed on goods situated in the indirect tax zone when the work is done nor a supply directly connected with *real property situated in the indirect tax zone; or (b) the *non-resident acquires the thing in *carrying on the non-resident ' s *enterprise, but is not *registered or *required to be registered. |
| 3 | Supplies used or enjoyed outside the indirect tax zone | a supply:
(a) that is made to a *recipient who is not in the indirect tax zone when the thing supplied is done; and (b) the effective use or enjoyment of which takes place outside the indirect tax zone; |
| other than a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with *real property situated in the indirect tax zone. | ||
| 4 | Rights | a supply that is made in relation to rights if:
(a) the rights are for use outside the indirect tax zone; or (b) the supply is to an entity that is not an *Australian resident and is outside the indirect tax zone when the thing supplied is done. |
| 5 | Export of services used to repair etc. imported goods | a supply that is constituted by the repair, renovation, modification or treatment of goods from outside the indirect tax zone whose destination is outside the indirect tax zone. |
S 38-190(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " in table heading and " the indirect tax zone " for " Australia " (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.
S 38-190(1) amended by No 92 of 2000, s 3 and Sch 3 items 8 and 9, by substituting table item 2, and by substituting " of work physically performed on goods situated in Australia when the thing supplied is done, or a supply directly connected " for " directly connected with goods situated in Australia when the thing supplied is done, or " in the third column of table item 3, effective 1 July 2000. Item 2 formerly read:
| " 2 | Recipient not an *Australian resident etc. | a supply that is made to a *recipient who:
(a) is not an *Australian resident; and (b) is not in Australia when the thing supplied is done; |
| other than a supply directly connected with goods situated in Australia when the thing supplied is done, or with *real property situated in Australia. " | ||
However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST-free if it is the supply of a right or option to acquire something the supply of which would be * connected with the indirect tax zone and would not be * GST-free .
S 38-190(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " , applicable to a tax period that commences on or after 1 July 2015.
S 38-190(2) amended by No 92 of 2000, s 3 and Sch 3 item 10, by inserting " and would not be *GST-free " at the end, effective 1 July 2000.
A supply covered by any of items 2 to 4 in the table in subsection (1) is not * GST-free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of * real property situated in the indirect tax zone that would be, wholly or partly, * input taxed under Subdivision 40-B or 40-C .
Note:
Subdivision 40-B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40-C deals with the sale of residential premises and the supply of residential premises by way of long-term lease.
S 38-190(2A) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " , applicable to a tax period that commences on or after 1 July 2015.
S 38-190(2A) inserted by No 23 of 2005, s 3 and Sch 9, item 1, applicable to supplies covered by any of items 2 to 4 in the table in subsection 38-190(1) made on or after 1 April 2005.
Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST-free if:
(a) it is a supply under an agreement entered into, whether directly or indirectly, with a * non-resident ; and
(b) the supply is provided, or the agreement requires it to be provided, to another entity in the indirect tax zone; and
(c) for a supply other than an *input taxed supply - none of the following applies:
(i) the other entity would be an *Australian-based business recipient of the supply, if the supply had been made to it;
(ii) the other entity is an individual who is provided with the supply as an employee or *officer of an entity that would be an Australian-based business recipient of the supply, if the supply had been made to it; or
(iii) the other entity is an individual who is provided with the supply as an employee or officer of the *recipient, and the recipient ' s acquisition of the thing is solely for a *creditable purpose and is not a *non-deductible expense.
S 38-190(3) amended by No 52 of 2016, s 3 and Sch 2 item 19, by inserting para (c), applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26 .
S 38-190(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " , applicable to a tax period that commences on or after 1 July 2015.
S 38-190(3) amended by No 23 of 2005, s 3 and Sch 9, item 2, by inserting " or (2A) " after " (2) " , applicable to supplies covered by any of items 2 to 4 in the table in subsection 38-190(1) made on or after 1 April 2005.
S 38-190(3) inserted by No 177 of 1999, s 3 and Sch 1 item 46, effective 1 July 2000.
A supply is taken, for the purposes of item 3 in that table, to be a supply made to a * recipient who is not in the indirect tax zone if:
(a) it is a supply under an agreement entered into, whether directly or indirectly, with an * Australian resident ; and
(b) the supply is provided, or the agreement requires it to be provided, to another entity outside the indirect tax zone.
S 38-190(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-190(4) inserted by No 92 of 2000, s 3 and Sch 3 item 11, effective 1 July 2000.
Subsection (4) does not apply to any of the following supplies:
(a) a transport of goods within the indirect tax zone that is part of, or is connected with, the *international transport of the goods;
(b) a loading or handling of goods within the indirect tax zone that is part of, or is connected with, the international transport of the goods;
(c) a service, done within the indirect tax zone, in relation to the goods that facilitates the international transport of the goods;
Example:The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.
(d) insuring transport covered by paragraph (a);
(e) arranging transport covered by paragraph (a), or insurance covered by paragraph (d).
Note:
The supply might still be GST-free under item 5, 5A, 6 or 7 in the table in subsection 38-355(1) .
S 38-190(5) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-190(5) inserted by No 91 of 2010, s 3 and Sch 1 item 4, effective 29 June 2010. For application provision, see history note under s 13-20(2) .
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