ATO Interpretative Decision
ATO ID 2002/9 (Withdrawn)
Good and services tax
GST and attribution of input tax credits on creditable importationsFOI status: may be released
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Information on this issue is found in GST and imported goods (NAT 3124)This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Does the entity, a business operator, attribute the input tax credit for a creditable importation, under subsection 29-15(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), to the tax period in which the goods and services tax (GST) on the importation was paid, even though the entity does not pay its overseas supplier for the goods until the entity on-sells the goods in Australia?
Decision
Yes, the entity does attribute the input tax credit for a creditable importation, under subsection 29-15(1) of the GST Act, to the tax period in which the GST on the importation was paid, even though the entity does not pay its overseas supplier for the goods until the entity on-sells the goods in Australia.
Facts
The entity is a business operator that accounts for GST on a cash basis. The entity makes a taxable importation under subsection 13-5(1) of the GST Act. The entity pays the goods and services tax (GST) on the importation at the time of the importation, in accordance with paragraph 33-15(1)(a) of the GST Act. The importation is also a creditable importation for which the entity is entitled to an input tax credit under section 15-15 of the GST Act.
The entity does not pay its overseas supplier for the goods until the entity subsequently sells the goods in Australia.
The entity has not entered into the deferred GST payment scheme for taxable importations.
The entity is registered for GST.
Reasons for Decision
Under subsection 29-15(1) of the GST Act, an entity must attribute an input tax credit for a creditable importation to the tax period in which the entity pays the GST on the importation.
However, if paragraph 33-15(1)(b) of the GST Act applies to the 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 (subsection 29-15(2) of the GST Act).
Paragraph 33-15(1)(b) of the GST Act refers to a scheme the entity may have entered into under the A New Tax System (Goods and Services Tax) Regulations 1999 to defer the GST payable on an entity's taxable importations. The entity has not entered into such a scheme, and therefore, paragraph 33-15(1)(b) of the GST Act does not apply to the payment of the GST on the importation.
The entity has paid the GST on the importation at the time of the importation. Therefore, under subsection 29-15(1) of the GST Act, the entity attributes the input tax credit on the creditable importation to the tax period in which the importation was made.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 29-15(1)
subsection 29-15(2)
paragraph 33-15(1)(a)
paragraph 33-15(1)(b)
section 15-15
The Regulation
Keywords
Goods & services tax
GST tax periods
Attribution rules
Imports
Creditable importations
Taxable importations
ISSN: 1445-2782
| Date: | Version: | |
| 19 November 2001 | Original statement | |
| You are here | 25 November 2005 | Archived |