ATO Interpretative Decision
ATO ID 2011/10
Goods and Services Tax
GST and the supply of a security and safety assessment of goods to be transported overseasFOI status: may be released
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the supply of a security and safety assessment of goods to be transported overseas within the definition of 'loading or handling of goods' under paragraph (a) of item 5A in the table in subsection 38-355(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Decision
Yes. The entity is making a supply of 'loading or handling of goods' under paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act when it provides a security and safety assessment of goods to be transported overseas.
Facts
The entity is an international freight carrier.
The entity provides a security and safety assessment of goods together with the transport of those goods overseas.
Reasons for Decision
Subsection 38-355(1) of the GST Act provides the circumstances under which supplies of transport and other related matters will be treated as GST-free. Specifically, paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act concerns supplies of loading and handling of goods undertaken during the course of international transport of those goods.
'Handling' is not defined in the GST Act. The term 'handling' is defined in The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01 as '...3. the process of packing, moving, carrying or transporting something.'
It is considered that the security and safety assessment provided by the entity amounts to 'handling' of the goods as per the definition in The Macquarie Dictionary because it is part of the process of transporting the goods overseas.
Accordingly, the supply of a security and safety assessment of goods will fall within the meaning of 'loading or handling of goods' in paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act.
Date of decision: 13 January 2011
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-355(1)
subsection 38-355(1) table item 5A paragraph (a)
ATO ID 2002/556
Other References:
The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01
Keywords
Goods and services tax
Export of goods
GST free
GST transport
Transport of goods
ISSN: 1445-2782