Edited version of your private ruling

Authorisation Number: 1012525880920

Ruling

Subject: GST and re-importation of art works

Question

Are you required to pay goods and services tax (GST) when art works is re-imported into Australia after it has been exported?

Answer

The re-importation of the art works will be a non-taxable importation when all the conditions of subsection 42-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 are satisfied. However, you will need to provide the Australian Customs and Border Protection Service (Customs) with sufficient documentation to show that the conditions are satisfied.

Relevant facts and circumstances

You purchased an art work in Australia in 20XX for $X including GST. You purchased the art work from an Australian entity.

You are not registered for GST in Australia. You did not claim input tax credits for your acquisition of the art work.

You moved to overseas with your family for business and personal reasons in 20XX. You took the art work with you along with other personal effects.

The gallery from which you purchased the art work arranged the crating and shipping to an overseas country.

The art work was shipped by a freight forwarder company.

You do not have the Export Declaration Number (EDN) for the original shipment to overseas.

You still own the art work in your name and hold title to the work.

You wish to re-import the art work into Australia as your personal property. Currently you are not returning to Australia. You will be the importer of the art work into Australia.

You will send the art work to the Australian entity's address to store the art work in Australia.

You have been advised by Customs that your importation of the art work into Australia may be subjected to GST.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 13-5

A New Tax System (Goods and Services Tax) Act 1999 Section 13-10

A New Tax System (Goods and Services Tax) Act 1999 Section 42-5

A New Tax System (Goods and Services Tax) Act 1999 Section 42-10

Customs Tariff Act 1995

Customs Act 1901

Reasons for decision

Taxable importation

Under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), you make a taxable importation if:

(a) goods are imported, and

(b) 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.

Goods and Services Tax Ruling GSTR 2003/15 provides guidance on the importation of goods into Australia. (GSTR 2003/15 is available at the Australian Taxation Office website at www.ato.gov.au).

If you lodge an import entry in your name as the 'owner' of the goods, you enter the goods for home consumption within the meaning of the Customs Act 1901(Customs Act); and you are liable to pay GST on any taxable importation.

As the art work will be imported into Australia and entered for home consumption, the importation of the art work will be a taxable importation unless it is a non-taxable importation.

Non-taxable importation

Under section 13-10 of the GST Act, an importation is a 'non-taxable importation' if:

(a) it is a non-taxable importation under Part 3-2 of the GST Act, or

(b) it would have been a supply that was GST-free or input taxed if it had been a supply.

On the basis of the facts provided, there are no provisions in the GST Act for which the supply and importation of the art work into Australia would be GST-free or input taxed.

We also consider Division 42 of the GST Act in order to establish whether the importation will be a non-taxable importation.

Under subsection 42-10(1) of the GST Act, 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.

(* denotes a defined term under section 195-1 of the GST Act)

If all the above conditions are satisfied, the re-importation of the art work will be a non-taxable importation under subsection 42-10(1) of the GST Act.

You advised that the art work was exported from Australia in 20XX. You had paid GST on the acquisition of this art work. You wish to re-import the art work into Australia as your personal property.

Accordingly, your importation of goods (art work) returning to Australia in an unaltered condition will be a non-taxable importation, provided all the other conditions in section 42-10 of the GST Act are satisfied. However, you will be required to provide sufficient documentation to demonstrate that all the conditions are satisfied.

Customs is responsible for the administration and collection of GST on importations of goods into Australia. You will need to provide Customs with sufficient documentation to treat the
re-importation as a non-taxable importation. We suggest that you, as the importer, contact Customs prior to importation of the art work to ensure that sufficient documentation and any other Customs' requirements are settled in advance.

Please note that should Customs determine, on the facts available to them, that your importation of the art work does not fall within the scope of the above mentioned provisions, then, their decision will prevail over this decision.

Customs can be contacted by phone on 1300 363 263, by e-mail at www.information@customs.gov.au or on their website at www.customs.gov.au.