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Edited version of your written advice
Authorisation Number: 1012916707025
Date of advice: 24 November 2015
Ruling
Subject: GST and input tax credits
Question
Can you claim an input tax credit (ITC) for the GST paid on the importation of goods made by another entity?
Advice
No.
Under section 15-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) an entity is entitled to an ITC for any creditable importation that it makes.
An entity makes a creditable importation under section 15-5 of the GST Act if:
a) the entity imports goods solely or partly for a creditable purposes; and
b) the importation is a taxable importation; and
c) the entity is registered or required to be registered for GST.
Under subsection 15-10(1) of the GST Act, the entity imports goods for a creditable purpose to the extent that it imports the goods in carrying on its enterprise.
You are not the importer of the goods as you are not the owner of the goods in the Import Declaration. Further the goods were not imported for your business purposes. Accordingly, you have not made a creditable importation under section 15-5 of the GST Act.
You cannot claim an ITC for the GST you paid on the importation of goods made by the other entity.
Relevant fact
You are a customs agent company.
An Australian entity has contracted your services in regard to its importation of some goods in Australia.
When the goods arrived in Australia, you have paid all the customs charges to Australian Customs and the Australian entity was declared as the owner of the goods in the Import Declaration. The Australian Customs subsequently released the goods directly to the entity.
The entity has delivered the goods to its customers and did not make any payment to you. The entity had gone into liquidation and still owed you for the services you carried on for the importation of the goods in Australia and for the expenses you paid to Australian Customs.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 15-5