On 19 September 2018, the ATO issued GST Ruling GSTR 2018/2 (Ruling) which sets out the ATO’s view on when supplies of goods (other than low-value imported goods) are connected with the indirect tax zone, being Australia.
Specifically, the ruling considers the operation of the following provisions of the GST ACT:
- sub-section 9-25(1) (supplies of goods wholly within Australia);
- sub-section 9-25(2) (supplies of goods from Australia); and
- sub-section 9-25(3) (supplies of goods to Australia).
Supplies of goods wholly within Australia
Goods are delivered in Australia or made available in Australia where they are physically delivered or made available in Australia. The terms ‘delivered’ and ‘made available’ look at the place where the goods are at the relevant time.
‘Made available’ refers to the situation where goods are not actually delivered to the recipient but rather, the supplier makes the goods physically available to the recipient in Australia. Where the recipient imports goods into Australia, the supply of goods is not connected with Australia.
Supply of goods from Australia
A supply of goods is connected with Australia if those goods are being removed from Australia. ‘Removed’ refers to the ordinary meaning of moving from one place to another.
Supply of goods to Australia
A supply of goods is connected with Australia if the supply involves those goods being brought to Australia and the supplier imports the goods into Australia. However, if a supply of goods involves the goods being delivered, or made available, to the recipient outside of Australia and the recipient subsequently imports the goods into Australia, the supply is not connected with Australia. Despite this, the importation can be a taxable import and the recipient would be liable to pay GST.
The Ruling also describes the treatment of supplies of good involving installation and assembly services and exceptions involving leased goods between non-residents and continued lease of goods.