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Edited version of your written advice
Authorisation Number: 1051485308828
Date of advice: 20 February 2019
Ruling
Subject: GST and input tax credits on taxable importations
Question 1
Are you entitled to claim an input tax credit for the taxable importations you have made, and continue to make, into Australia?
Answer
Yes, you are entitled to claim input tax credits for the taxable importations you have made, and continue to make, into Australia under section 15-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) since your importations are creditable importations under section 15-15 of the GST Act.
Under section 15-15 of the GST Act an entity is entitled to an input tax credit 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 import 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.
From the facts given to us you satisfy the requirements in section 15-5 of the GST Act as:
a) you import the goods for your business purposes;
b) the importation is a taxable importation; and
c) you are registered for GST.
You therefore are entitled to claim input tax credits for your creditable importations under section 15-5 of the GST Act.
Question 2
If the answer to the above question is yes, are you able to claim the input tax credits that arose from the quarter ending March 2016 to the quarter ending December 2018 in your December 2018 Business Activity Statement (BAS)?
Answer
Yes, you are able to claim the input tax credits that arose from the quarter ending March 2016 to the quarter ending December 2018 in your December 2018 BAS.
Under Division 93 of the GST Act your entitlement to claim a GST credit ends four years from the due date of the first activity statement in which it could have been claimed in accordance with subsections 29-10(1) or (2) of the GST Act.
In your case your entitlement for input tax credits that arose from the quarter ending March 2016 to the quarter ending December 2018 will be within the four years from the due date of the first activity statement in which you could have claimed in accordance with subsections 29-10(1) or (2) of the GST Act if you make the claim in your December 2018 BAS.
Relevant facts and circumstances
● You are a non-resident of Australia and do not carry on the business in Australia.
● You ship goods to various countries, including Australia.
● You are registered for GST and you lodge your Business Activity Statements on a quarterly basis.
● You engaged an overseas freight company to provide various logistic and shipping services. The overseas freight company has in turn engaged its Australian subsidiary. As such, the Australian subsidiary is listed on all relevant Australian Customs Import Declarations (N10) ("Import Declarations") as your customs broker and you are noted as the "importer" on all relevant Import Declarations.
● Your customs broker, also acts as a paying agent for all customs, duties and taxes (such as GST) levied on the import of the goods into Australia. These amounts are ultimately recovered by regular invoices issued by the Australian subsidiary to you. The Australian subsidiary has not claimed input tax credits for any amount of GST it has paid on your behalf for the taxable importations. The goods are stored in various warehouses in Australia.
● You make various purchases in Australia. You account for the GST you collect on your sales and claim the GST you pay on your purchases.
● You intend to claim credits in your December 2018 BAS as the amount is for the GST paid on the taxable importation of the goods into Australia between 8 February 2016 to15 August 2018 and for which you did not make any claims. This amount will be reduced by GST collected on sales in the December 2018 quarter.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 15-5
A New Tax System (Goods and Services Tax) Act 1999 section 15-15
A New Tax System (Goods and Services Tax) Act 1999 Division 93