| 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: 1051999162490
Date of advice: 27 June 2022
Ruling
Subject: GST and consignment sales
Question 1
Are your consignment sales a taxable supply of the goods by you?
Answer
No.
Question 2
If the answer to Question 1 is no, are you making a taxable supply of agency services to the supplier of the goods, when you sell the goods on consignment?
Answer
When you are registered or required to be registered for GST, you will not be liable to pay GST on a sale of consignment goods you make in your capacity as an agent of the consignors. However, you are liable for the GST on the commission you receive from the consignors.
This ruling applies for the following periods:
From 1 April 20XX
Relevant facts and circumstances
You were registered for GST from XXX to XXX and from XXX to XXX, you are not currently registered for GST.
You sell goods on consignment instore and online
You have agreements with the consignors which states the amount of commission you earn on the consignment sales
Your agreement with the consignors state you are not responsible for stolen, damaged or faulty stock to the consignor
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 9-10
A New Tax System (Goods and Services Tax) Act 1999 Section 9-15
A New Tax System (Goods and Services Tax) Act 1999 Section 23-5