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Ruling
Subject: Importation
Question
Is the current importation of your vessel a non-taxable importation?
Answer
Yes, the current importation of your yacht is a non-taxable importation.
Relevant facts and circumstances
§ You are the owner of a vessel which you use for private purposes.
§ You are not carrying on an enterprise with regard to this ownership.
§ You are not registered for the goods and services tax (GST).
§ You purchased the vessel overseas and imported it to Australia recently.
§ You entered the vessel for home consumption within the meaning of the Customs Act 1901.
§ The importation of the vessel was a taxable importation and you paid Custom Duty and GST on the importation.
§ You were not entitled to, nor claimed any, input tax credit on the importation of the vessel.
§ Subsequently to the importation you took the vessel overseas.
§ You now intend to bring the vessel back to Australia (re-import).
§ The vessel will be brought back to Australia in an unaltered condition and was not subjected to any repair, renovation, alteration or any other process that in any way altered its condition since it was taken out of Australia.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act) - Section 42-10
Reasons for decision
Section 42-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states that:
(1) An importation of goods is a non-taxable importation if:
(a) the goods were exported from Australia and are returned to Australia, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since their export; and
(b) the importer was not entitled to, and did not claim, a payment under Division 168 (about the tourist refund scheme) related to the export of the goods; and
(c) the importer:
(i) is the manufacturer of the goods; or
(ii) has previously acquired the goods, and the supply by means of which the importer acquired the goods was a *taxable supply (or would have been a taxable supply but for section 66-45); or
(iii) has previously imported the goods, and the previous importation was a *taxable importation in respect of which the GST was paid.
(Items marked with an asterisk are defined in section 195-1 of the GST Act)
Goods and Services Tax Ruling GSTR 2003/15 (GSTR 2003/15) provides the Commissioner's view of the above section of the GST Act. Paragraph 100 of the GSTR 2003/15 states:
GST is not payable……on the entry of goods for home consumption where the circumstances of the importation satisfy the requirements of the non-taxable importation provisions"
Paragraph 239 of GSTR 2003/15 states:
GST is payable on taxable importations. Importations are not taxable importations to the extent that they satisfy the requirements for a non-taxable importation. No GST is payable in respect of a non-taxable importation."
Paragraphs 246-247 of GSTR 2003/15 states:
246. The importation of goods returned to Australia in an unaltered condition can be a non-taxable importation, provided the conditions in section 42-10 are satisfied.
247. Under subsection 42-10(1), where goods are exported and later re-imported into Australia, the re-importation is a non-taxable importation provided:
· the exported and re-imported goods have not been subjected to any treatment, industrial processing, repair, renovation, alteration or any other process since their export;
· the importer was not entitled to, and did not claim, a refund of GST under the tourist refund scheme when the goods were exported; and
· the importer is the manufacturer of the goods, or had previously acquired the goods by way of a taxable supply86 or taxable importation in respect of which GST was paid.
In this case, the vessel was exported from Australia (when it was taken out of Australia) and is now being returned to Australia. You informed us that the vessel is being returned to Australia without having been subject to any treatment, industrial processing, repair, renovation, alternation or any other process since it was taken out of Australia. You further advised us that you previously imported the vessel as a taxable importation in respect of which you paid GST. Therefore, the importation of the vessel is a non-taxable importation.
Please note that the Australian Customs is the authority to determine the status (for regulatory purposes) of any goods brought into Australia. Should the Australian Customs determine, on the facts available to them, that your importation of the vessel does not fall within the scope of the above mentioned provisions, then, their decision will prevail over this decision.