• Legal database
Legal database

ATO Interpretative Decision

ATO ID 2001/371 (Withdrawn)

Goods and Services Tax

GST and supply by an entity not registered for GST
FOI 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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, a supplier of goods that is not registered for goods and services tax (GST), making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells goods?

Decision

No, the entity is not making a taxable supply under section 9-5 of the GST Act when it sells goods.

Facts

The entity is a supplier of goods. The entity is neither registered nor required to be registered for GST. The entity sells goods in the course of its enterprise. The entity's supply of the goods is connected with Australia.

Reasons for Decision

Under section 9-5 of the GST Act an entity makes a taxable supply if:

•
the entity makes a supply for consideration;
•
the supply is made in the course or furtherance of an enterprise that the entity carries on;
•
the supply is connected with Australia; and
•
the entity is registered, or required to be registered.

The entity is making a supply that is for consideration in the course of its enterprise and the supply is connected with Australia. However, the entity is neither registered nor required to be registered for GST.

Therefore, as the entity's supply does not meet the requirements of section 9-5 of the GST Act, the entity is not making a taxable supply when it sells goods.

Date of decision:  16 August 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5

Keywords
Goods and services tax
GST registration
Required to be registered
GST supplies and acquisitions
Taxable supply

Business Line:  GST

Date of publication:  29 September 2001

ISSN: 1445-2782

history
  Date: Version:
  16 August 2001 Original statement
You are here 2 September 2005 Archived

Back to top