| Disclaimer 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 private advice
Authorisation Number: 1051857495054
Date of advice: 1 July 2021
Ruling
Subject: GST and supplies and importations made by non-residents
Questions
The Commissioner was asked to rule whether:
1. the supply of logistics services in Australia by a non-resident to another non-resident entity is a GST-free supply of services under subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
2. an Australian resident agent is entitled to claim input tax credits under section 57-10 of the GST Act in relation to the GST incurred on the importation of goods made by a non-resident principal through the resident agent into Australia?
3. an Australian resident agent is liable to pay GST under subsection 57-5(1) of the GST Act on the importation of the goods made by a non-resident principal through the resident agent?
4. the supply of certain services by a non-resident entity to another non-resident a supply that is connected with the indirect tax zone?
Answers
The Commissioner ruled as follows:
1. Yes, the supply of logistics services in Australia by a non-resident entity to another
2. non-resident is a GST-free supply of services under subsection 38-190(1) of GST Act as the supply falls under item 2(a) in the table in subsection 38-190(1) and is not negated by subsection 38-190(3) of the GST Act.
3. No, the Australian resident agent is not entitled to claim input tax credits under section 57-10 of the GST Act in relation to the GST incurred on the importation of goods made by a non-resident principal through the resident agent into Australia. This is because the non-resident principal did not make the importation for a creditable purpose.
4. Yes, the Australian resident agent is liable to pay GST under subsection 57-5(1) of the GST Act on the importation of the goods made by a non-resident principal through the resident agent.
5. Yes, the supply of certain services by a non-resident entity to another non-resident is a supply that is connected with the indirect tax zone.
Relevant legislative provisions
Section 9-5 of theA New Tax System (Goods and Services Tax) Act 1999
Section 9-25 of the A New Tax System (Goods and Services Tax) Act 1999
Section 9-26 of the A New Tax System (Goods and Services Tax) Act 1999
Section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999
Section 57 of the A New Tax System (Goods and Services Tax) Act 1999