ATO Interpretative Decision

ATO ID 2001/600

Goods and Services Tax

• This ATO ID contains references to provisions of the A New Tax System (Goods and Services Tax) Regulations 1999, which have been replaced by the A New Tax System (Goods and Services Tax) Regulations 2019. This ATO ID continues to apply in relation to the remade Regulations.

  A comparison table which provides the replacement provisions in the A New Tax System (Goods and Services Tax) Regulations 2019 for regulations which are referenced in this ATO ID is available.

  With effect from 1 July 2015, the term 'Australia' is replaced in nearly all instances within the GST, Luxury Car Tax and Wine Equalisation Tax legislation with the term 'indirect tax zone' by the Treasury Legislation Amendment (Repeal Day) Act 2015. The scope of the new term, however, remains the same as the repealed definition of 'Australia' used in those Acts. For readability and other reasons, where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in subsection 195-1 of the GST Act.

Issue

Is the entity, an individual, entitled to claim a tourist refund scheme (TRS) refund under subsection 168-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) for the goods and services tax (GST) payable on its acquisition of goods, when it leaves Australia and exports the goods from Australia as accompanied baggage?

Decision

Yes, the entity is entitled to claim a TRS refund under subsection 168-5(1) of the GST Act for GST payable on its acquisition of goods when it leaves Australia and exports the goods from Australia as accompanied baggage.

Facts

The entity is an individual. The entity is not registered for GST. The entity acquired goods in Australia. The supply of the goods to the entity was a taxable supply under section 9-5 of the GST Act.

The entity leaves Australia within 30 days of acquiring the goods and exports the goods from Australia as accompanied baggage. The goods do not consist of alcohol, tobacco or any associated products. The goods have not been partly consumed at the time the entity leaves Australia. The purchase price of the goods was at least $300. The entity holds one tax invoice for the acquisition.

The entity makes a claim for the TRS refund at the TRS verification facility before boarding the aircraft. The entity presents its passport, international boarding pass, the goods and the tax invoice for the goods at the request of an officer of Customs.

Reasons for Decision

Subsection 168-5(1) of the GST Act provides that an entity is entitled to a refund of the GST that was payable on the supply of goods to it, if:

•

the entity makes an acquisition of goods the supply of which is a taxable supply (paragraph 168-5(1)(a) of the GST Act);

•

the acquisition is of a kind specified in the A New Tax System (Goods and Services Tax ) Regulations 1999 (GST Regulations) (paragraph 168-5(1)(b) of the GST Act); and

•

the entity leaves Australia, and exports the goods from Australia as accompanied baggage, in the circumstances specified in the GST Regulations (paragraph 168-5(1)(c) of the GST Act).

The supply of the goods to the entity was a taxable supply under section 9-5 of the GST Act. Therefore, the entity meets paragraph 168-5(1)(a) of the GST Regulations.

Regulation 168-5.01 of the GST Regulations provides that, for paragraph 168-5(1)(b) of the GST Act, the acquisition must be a kind of acquisition in accordance with Subdivision 168 of the GST Regulations.

Regulation 168-5.02 of the GST Regulations provides that subdivision 168-1 applies to goods the supply of which is a taxable supply, except any of the following goods:

•

tobacco;

•

tobacco products;

•

alcoholic beverages, except wine on which wine tax has been borne; and

•

goods that have been partly consumed at the time at which the acquirer leaves Australia.

The entity's goods do not consist of alcohol, tobacco or any associated products, and the goods have not been partly consumed at the time the entity leaves Australia. Therefore, this requirement is satisfied.

Regulation 168-5.04 of the GST Regulations provides that if 1 item has been acquired from a registered entity, the purchase price paid by the acquirer must be at least $300. If 2 or more items have been acquired from the same registered entity, the total purchase price paid by the acquirer for the items must be at least $300. Regulation 168-5.05 of the GST Regulations provides that the acquisition must be an acquisition for which the acquirer holds 1 tax invoice only.

The purchase price of the goods was greater than $300, and the entity holds one tax invoice for the acquisition. Therefore, this requirement is satisfied.

In this case, paragraph 168-5(1)(b) of the GST Act has been met because the acquisition is of a kind specified in the regulations.

Regulation 168-5.08 of the GST Regulations provides that, for paragraph 168-5(1)(c) of the GST Act, an entity must export goods from Australia as accompanied baggage in the circumstances set out in Subdivision 168-3 of the GST Regulations.

Regulation 168-5.09 of the GST Regulations provides that the goods must be exported within 30 days after the day on which they were acquired. The entity leaves Australia within 30 days of acquiring the goods and exports the goods from Australia as accompanied baggage. Therefore, this requirement is satisfied.

Regulation 168-5.07 of the GST Regulations provides that the entity must leave Australia at an airport, or seaport, that has a TRS verification facility. In this case, this requirement is satisfied.

Regulation 168-5.10 of the GST Regulations sets out the export verification requirements that must be satisfied before an entity can receive a TRS refund. Subregulation 168-5.10(3) of the GST Regulations provides that the entity must present to an officer of Customs, at a TRS verification facility when the entity is leaving Australia, the following items:

•

the tax invoice relating to the goods (subregulation 168-5.10(1) of the GST Regulations); and

•

as many of the following as are requested:

(a)

the goods;

(b)

the entity's passport;

(c)

documents that confirm the entity's entitlement to leave Australia on the aircraft or ship (for example, the entity's boarding pass or a ticket) (subregulation 168-5.10(2) of the GST Regulations).

In this case, when the entity makes a claim for the TRS refund at the TRS verification facility before boarding the aircraft, it presents its passport, international boarding pass, the goods and the tax invoice of the goods at the request of the Customs officer.

As the entity does meet the requirements of regulations 168-5.10 of the GST Regulations, the entity is exporting the goods from Australia as accompanied baggage, in the circumstances specified in the GST Regulations. Consequently, the entity does meet the requirement in paragraph 168-5(1)(c) of the GST Act.

In conclusion, the entity meets all the requirements of subsection 168-5(1) of the GST Act. Therefore, the entity is entitled to claim a TRS refund for the GST payable on its acquisition of the goods when it leaves Australia and exports the goods as accompanied baggage

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   subsection 168-5(1)
   paragraph 168-5(1)(a)
   paragraph 168-5(1)(b)
   paragraph 168-5(1)(c)

Keywords
Goods and services tax
GST tourist refund scheme
Export of goods

Siebel/TDMS Reference Number:  CW227458

Business Line:  Indirect Tax

Date of publication:  20 November 2001

ISSN: 1445-2782