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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of private ruling

Authorisation Number: 1011874363664

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Ruling

Subject: Importation of precious metals

Question

Is GST payable on the importation of silver bullion coins?

Answer

No, GST is not payable on the importation of silver bullion coins.

Relevant facts

You are not registered for GST

You are not a dealer in precious metals

You imported a number of coins

The coins are 99.999% pure silver bullion coins

The price paid for the coins was determined by reference to the spot price for silver

The price did not include numismatic or collector value

The coins are not proof coins

The coins carry all the required markings describing purity , weight and silver content

You import similar items on a regular basis.

Reasons for decision

Section 13-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states that you are liable to pay the GST on any taxable importation that you make.

In accordance with section 13-5 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). However, the importation is not a taxable importation to the extent that it is a 'non-taxable importation'.

Section 13-10 of the GST Act states, in part, that an importation is non-taxable if, had it been a supply rather than importation, it would have been GST-free or input taxed.

Division 38 of the GST Act contains provisions relating to GST-free supplies. Section 38-385 of the GST Act states that a supply of precious metal is GST-free in certain circumstances. One of the requirements for the supply to be GST-free is that the recipient of the supply is a dealer in precious metal.

You have advised that you are not a dealer in precious metal. As such, the supply is not GST-free.

It is now necessary to consider whether the supply is input taxed. Division 40 of the GST Act contains provisions relating to input taxed supplies.

Section 40-100 of the GST Act states that a supply of precious metal is input taxed. The definition of 'precious metal' is contained in section 195-1 of the GST Act to include:

    (a) gold (in an investment form) of at least 99.5% fineness; or

    (b) silver (in an investment form) of at least 99.9% fineness; or

    (c) platinum (in an investment form) of at least 99% fineness

Further guidance in regard to the meaning of precious metal is contained in Goods and Services Tax Ruling Goods and Services Tax: What is 'precious metal' for the purposes of GST? (GSTR 2003/10).

GSTR 2003/10 discusses the term 'in an investment form' and provides a summary, at paragraph 29, of the characteristics gold, silver or platinum must possess to be considered 'in an investment form' for GST purposes. For gold, silver or platinum to be in an investment form for the purposes of the GST Act, it must be in a form that:

    · is capable of being traded on the international bullion market, that is, it must be in the physical form of a bar, wafer or bullion coin;

    · bears a mark or characteristic accepted as identifying and guaranteeing its fineness and quality; and

    · is usually traded at a price that is determined by reference to the spot price of the metal it contains.

You advised that:

    · the coins are in the form of a bullion coin bearing the required markings describing purity and weight

    · the price was determined having regard to the spot price of silver

    · the silver coins are of a fineness of 99.999% purity

    · the coins hold no numismatic value

    · the coins are not proof coins

Therefore, the coins are considered a precious metal for GST purposes.

As such, had the importation of the coins been a supply, the supply would have been input taxed in accordance with section 40-100 of the GST Act.

Consequently, the importation is a non-taxable importation as per paragraph 13-10(b) of the GST Act and therefore not a taxable importation as defined in section 13-5 of the GST Act.


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