TAXATION RULING NO. ST 2202

ST 2202

SALES TAX : IMPORTED HORSES

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FOI status:

PREAMBLE

Taxation Ruling No. ST 2144 deals with the sales tax classification of racehorses born in the United Kingdom but raised in and imported into Australia from New Zealand. The Ruling states that the racehorses are the produce of the United Kingdom and not New Zealand. Accordingly the provisions of sub-item 111(1), First Schedule did not apply and the racehorses are taxable at the general rate.

2. The Sales Tax (Exemptions and Classifications) Amendment Act 1985, Act No. 145 of 1985, effective on and from 21 August 1985, inserted a new item, item 117A, First Schedule, that exempts from sales tax imported horses. The effect of this item is that all horses imported into Australia, regardless of the purpose for importing the horses, e.g., racing, breeding or other purposes and regardless of the country of exportation will be exempt from sales tax.

RULING

3. From 21 August 1985 imported horses are exempt from sales tax under item 117A, First Schedule. Taxation Ruling No. ST 2144 is modified accordingly.

4. Horses imported prior to 21 August 1985, other than solely for breeding purposes and from countries other than New Zealand, Fiji, Papua New Guinea and territiories Norfolk Island, Christmas Island and Cocos (Keeling) Islands are taxable at 20%.

COMMISSIONER OF TAXATION
6 January 1986

References

ATO references:
NO 85/9197-1

Related Rulings/Determinations:

ST 2144

Subject References:
HORSES
IMPORTED HORSES
RACEHORSES

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEMS 21
AND 117A, FIRST SCHEDULE.