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This edited version has been archived due to the length of time since original publication.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 your private ruling

Authorisation Number: 1012109560656

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Ruling

Subject: goods and services tax (GST) and importation of vehicle into Australia

Question

Are you entitled to a refund of the GST you paid on your importation of the vehicle into Australia?

Answer

No.

This ruling applies for the following periods:

The scheme commences on:

Relevant facts and circumstances

You are not registered for GST.

You imported a vehicle into Australia.

Customs charged you GST on the importation.

Shortly after you imported the vehicle into Australia, you exported the vehicle back to an overseas country.

The vehicle was not registered or used while in Australia.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-20(1)(a)

A New Tax System (Goods and Services Tax) Act 1999 section 15-1

A New Tax System (Goods and Services Tax) Act 1999 section 15-5

A New Tax System (Goods and Services Tax) Act 1999 section 15-10

Reasons for decision

Summary

There is no GST 'drawback' scheme for importations of goods into Australia where the importer subsequently exports the goods from Australia. Where an entity imports goods into Australia and GST is imposed by Customs and the entity subsequently exports the goods from Australia, the entity cannot claim a refund of the GST that was paid to Customs from Customs. Therefore, you cannot claim a refund of the GST that you paid to Customs from Customs.

You are not entitled to an input tax credit (which is a GST refund) from the Australian Taxation Office (ATO) in respect of your importation of the vehicle as you did not use the vehicle in an enterprise that you carried on in Australia while the vehicle was in Australia.

There is no provision of any Australian taxation legislation that would allow you to obtain a refund of the GST you paid on the importation of the vehicle.

Detailed reasoning

There is no GST 'drawback' scheme for importations of goods into Australia where the importer subsequently exports the goods from Australia. Where an entity imports goods into Australia and GST is imposed by Customs and the entity subsequently exports the goods from Australia, the entity cannot claim a refund of the GST that was paid to Customs from Customs. Therefore, you cannot claim a refund of the GST that you paid to Customs from Customs.

However, an entity that is registered for GST and uses the goods they imported for enterprise purposes may be entitled to an input tax credit from the ATO in respect of the importation. In order to be entitled to an input tax credit on the importation, the importer must make a creditable importation under section 15-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

You make a creditable importation where you satisfy the requirements of section 15-5 of the GST Act, which states:

    You make a creditable importation if:

    (a) you import goods solely or partly for a *creditable purpose; and

    (b) the importation is a *taxable importation; and

    (c) you are *registered, or *required to be registered.

    (*Denotes a term defined in section 195-1 of the GST Act)

Creditable purpose

Section 15-10 of the GST Act explains when an importation of goods is for a creditable purpose.

Subsection 15-10(1) of the GST Act states:

You import goods for a creditable purpose to the extent that you import

the goods in *carrying on your *enterprise.

In accordance with paragraph 9-20(1)(a) of the GST Act, an enterprise includes an activity or series of activities done in the form of a business.

Subsection 15-10(2) of the GST Act states:

    However, you do not import the goods for a creditable purpose to the extent that:

    (a) the importation relates to making supplies that would be *input taxed;

    or

    (b) the importation is of a private or domestic nature.

You did not use the vehicle in an enterprise that you carried on in Australia while the vehicle was in Australia. Hence, you did not import the vehicle in carrying on your enterprise. Therefore, you did not satisfy the requirement of subsection 15-10(1) of the GST Act.

Hence, you did not import the vehicle for a creditable purpose. Therefore, you did not satisfy the requirement of paragraph 15-5(a) of the GST Act.

As you did not satisfy all of the requirements of section 15-5 of the GST Act, you did not make a creditable importation of the vehicle. Therefore, you are not entitled to an input tax credit in respect of your importation of the vehicle.

There is no provision of any Australian taxation legislation that would allow you to obtain a refund of the GST you paid on the importation of the vehicle.


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