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This edited version has been archived due to the length of time since original publication.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

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012930071142

Date of advice: 17 December 2015

Ruling

Subject: GST and supply of goods brought from overseas

Question

Is the supply of goods that are brought from overseas and delivered directly to an overseas company subject to the goods and services tax (GST)?

Advice

No.

GST is payable on a taxable supply. One of the requirements for a supply to be a taxable supply is the supply is connected with Australia.

Goods and Services Tax Ruling GSTR 2000/31 provides guidance on when a supply is connected with Australia and is available from the legal database of www.ato.gov.au

Under section 9-25 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), a supply of goods is connected with Australia if:

    • the goods are delivered, or made available in Australia to the recipient of the supply (subsection 9-25(1) of the GST Act);

    • the supply of goods involves the goods being removed from Australia (subsection 9-25(2) of the GST Act);

    • the supply of goods involves the goods being brought to Australia and the supplier either imports the goods into Australia or installs or assembles the goods in Australia (subsection 9-25(3) of the GST Act).

In this case the goods are located overseas and shipped directly to the overseas company. The supply of the goods is not connected with Australia since none of the above conditions are satisfied. You do not satisfy the requirement of paragraph 9-5 (c) of the GST Act at the time of the supply.

Accordingly, your supply of goods that are delivered to the overseas company is not a taxable supply under section 9-5 of the GST Act and GST is not applicable to the supply.

Relevant fact

You are an Australian company and registered for GST.

You received an order from an Australian company that has a subsidiary company located overseas. The order is for both the Australian company and the overseas company.

The ordered goods are shipped directly from the overseas company to you in Australia and to the overseas company as per order placed by the Australian company.

You import the goods that arrived in Australia and deliver them to the Australian company. You charge GST for this supply.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 9-5

A New Tax System (Goods and Services Tax) Act 1999 section 9-25


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