| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1013093886391
Date of advice: 20 September 2016
Ruling
Subject: GST and supply of goods
Question 1
Will your supply of goods be subject to GST where the goods are acquired by you from outside the indirect tax zone and delivered directly to your customer in another place outside the indirect tax zone?
Answer
No. Your supply of the goods that are acquired by you from outside the indirect tax zone and delivered directly to your overseas customer will not be subject to GST.
Your supply will not be connected with the indirect tax zone under section 9-25 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as the goods will not be delivered or made available in the indirect tax zone to the recipient of the supply. Furthermore, the goods will not be exported from or imported into the indirect tax zone. As such, your supply of the goods will not be a taxable supply under section 9-5 of the GST Act and will not be subject to GST.
Question 2
Will you be required to be registered for GST where the only supplies that you will make are the supplies of the goods referred to in question 1?
Answer
No. You will not be required to be registered for GST where the only supplies that you will make are the supplies of the goods referred to in question 1.
Your supplies of the goods will be disregarded in calculating your current and projected GST turnover as they will not be connected with the indirect tax zone. Therefore, your GST turnover will not meet the registration turnover threshold and you will not be required to be registered for GST under section 23-5 of the GST Act where they are the only supplies that you will make.
Relevant facts and circumstances
You are an Australian company incorporated in 20XX. You are not registered for GST.
You will purchase goods from a supplier outside the indirect tax zone and sell them to a customer in another place outside the indirect tax zone. The goods will be shipped from the supplier directly to your customer. No goods will be imported into the indirect tax zone.
You are not acting as agent for either the supplier or the customer. You are purchasing and selling the goods in your own right.
The only supplies that you will make are the supplies of the goods which you will purchase from outside the indirect tax zone and delivered directly to the customer in another place outside the indirect tax zone.
All transactions will be undertaken at arms-length and not with related entities.
Your directors will handle the administration of the business transactions as well as the payment and receipt of funds for the buying and selling of the goods.
You expect to generate sales of more than $75,000 in the first 12 months of your trading.
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,
A New Tax System (Goods and Services Tax) Act 1999 section 23-5,
A New Tax System (Goods and Services Tax) Act 1999 section 188-10,
A New Tax System (Goods and Services Tax) Act 1999 section 188-15 and
A New Tax System (Goods and Services Tax) Act 1999 section 188-20.