A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions  

Part 3-1 - Supplies that are not taxable supplies  

Division 38 - GST-free supplies  

Subdivision 38-E - Exports and other cross-border supplies  

38-185   Exports of goods  

(1)    

The third column of this table sets out supplies that are GST-free :

GST-free exports of goods
Item	Topic	These supplies are GST-free …
1	Export of goods - general	a supply of goods, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after: (a)   the day on which the supplier receives any of the     * consideration for the supply; or (b)   if, on an earlier day, the supplier gives an * invoice     for the supply - the day on which the supplier     gives the invoice.
2	Export of goods - supplies paid for by instalments	a supply of goods for which the * consideration is provided in instalments under a contract that requires the goods to be exported, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after: (a)   the day on which the supplier receives any of the     final instalment of the consideration for the     supply; or (b)   if, on an earlier day, the supplier gives an * invoice     for that final instalment - the day on which     the supplier gives the invoice.
2A	Export of goods - supplies to associates without consideration	a supply of goods without * consideration to an * associate of the supplier, but only if the supplier exports them from the indirect tax zone.
3	Export of aircraft or ships	a supply of an aircraft or * ship , but only if the recipient of the aircraft or ship exports it from the indirect tax zone under its own power within 60 days (or such further period as the Commissioner allows) after taking physical possession of it.
4	Export of aircraft or ships - paid for by instalments	a supply of an aircraft or * ship for which the * consideration is provided in instalments under a contract that requires the aircraft or ship to be exported, but only if the * recipient exports it from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after, the earliest day on which one or more of the following occurs: (a)   the supplier receives any of the final instalment of     the consideration for the supply; (b)   the supplier gives an * invoice for that final     instalment; (c)   the supplier delivers the aircraft or ship to the recipient     or (at the recipient ' s request) to another person.
4A	Export of new recreational boats	a supply of a * ship , but only if: (a)   the ship is a * new recreational boat on the earliest day     (the receipt day ) on which one or more of the     following occurs:     (i)   the * recipient takes physical possession of the         ship;     (ii)   if * consideration for the supply is provided in         instalments under a contract that requires the         ship to be exported - the supplier receives any         of the final instalment;     (iii)   if consideration for the supply is provided in         instalments under a contract that requires the         ship to be exported - the supplier gives an         * invoice for the final instalment; and (b)   the supplier or recipient exports the ship from the     indirect tax zone within 12 months (or such further     period as the Commissioner allows) after the receipt     day; and (c)   subsection (6) does not apply at any time during the     period:     (i)   starting on the receipt day; and     (ii)   ending when the supplier or recipient exports the         ship.
5	Export of goods that are to be consumed on international flights or voyages	a supply of: (a)   * aircraft ' s stores , or spare parts, for use, consumption     or sale on an aircraft on a flight that has a destination     outside the indirect tax zone; or (b)   * ship ' s stores , or spare parts, for use, consumption     or sale on a * ship on a voyage that has a destination     outside the indirect tax zone;
		whether or not part of the flight or voyage involves a journey between places in the indirect tax zone.
6	Export of goods used to repair etc. imported goods	a supply of goods in the course of repairing, renovating, modifying or treating other goods from outside the indirect tax zone whose destination is outside the indirect tax zone, but only if: (a)   the goods are attached to, or become part of, the     other goods; or (b)   the goods become unusable or worthless as a     direct result of being used to repair, renovate,     modify or treat the other goods.
7	Goods exported by travellers as accompanied baggage	a supply of goods to a * relevant traveller , but only if: (a)   the supply is made in accordance with the rules     specified in the regulations; and (b)   the goods are exported as accompanied baggage     of the relevant traveller.

(2)    

However, a supply covered by any of items 1 to 6 in the table in subsection (1) is not GST-free if the supplier reimports the goods into the indirect tax zone.

(3)    

Without limiting items 1 and 2 in the table in subsection (1), a supplier of goods is treated, for the purposes of those items, as having exported the goods from the indirect tax zone if:

(a) before the goods are exported, the supplier supplies them to an entity that is not * registered or * required to be registered ; and

(b) that entity exports the goods from the indirect tax zone; and

(c) the goods have been entered for export within the meaning of section 113 of the Customs Act 1901 ; and

(d) since their supply to that entity, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

(e) the supplier has sufficient documentary evidence to show that the goods were exported; and

(f) if that entity is covered by paragraph 168-5(1A)(c) - the supplier has a declaration by that entity stating that:

(i) a payment has not been sought under section 168-5 for the supply; and

(ii) if the goods are *wine - a payment has not been sought under section 25-5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST-free unless the reimportation is a * taxable importation .

Note:

The entity will be covered by paragraph 168-5(1A)(c) if the entity is an individual who resides in an external Territory.

(4)    

Without limiting item 2A in the table in subsection (1), a supplier of goods is treated, for the purposes of that item, as having exported the goods from the indirect tax zone if:

(a) before the goods are exported, the supplier supplies them to an entity that:

(i) is an * associate of the supplier; and

(ii) is not * registered or * required to be registered ; and

(b) the associate exports the goods from the indirect tax zone within 60 days (or such further period as the Commissioner allows) after the earlier of the following:

(i) the day the goods were delivered in the indirect tax zone to the associate;

(ii) the day the goods were made available in the indirect tax zone to the associate; and

(c) the goods have been entered for export within the meaning of section 113 of the Customs Act 1901 ; and

(d) since their supply to the associate, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

(e) the supplier has sufficient documentary evidence to show that the goods were exported; and

(f) if the associate is covered by paragraph 168-5(1A)(c) - the supplier has a declaration by the associate stating that:

(i) a payment has not been sought under section 168-5 for the supply; and

(ii) if the goods are *wine - a payment has not been sought under section 25-5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST-free unless the reimportation is a * taxable importation .

Note:

The associate will be covered by paragraph 168-5(1A)(c) if the associate is an individual who resides in an external Territory.

Export of new recreational boats

(5)    

For the purposes of item 4A of the table in subsection (1), the * ship is a new recreational boat if the ship:

(a) has not been substantially reconstructed; and

(b) has not been sold, leased or used since the completion of its construction, except in connection with:

(i) the supply or acquisition of the ship as stock held for the purpose of sale or exchange in * carrying on an * enterprise ; or

(ii) the supply mentioned in that item, or the acquisition of the ship by the * recipient as mentioned in that item; and

(c) was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and

(d) is not a commercial ship.

(6)    

For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the * ship by the supplier in connection with the supply of the ship to the * recipient , the * ship is used:

(a) as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or

(b) in * carrying on an * enterprise in the indirect tax zone; or

(c) in the indirect tax zone in carrying on an enterprise outside the indirect tax zone, not including use that involves the ship being used:

(i) in a way that is private or domestic in nature; or

(ii) in an activity, or series of activities, done as a private recreational pursuit or hobby; or

Example:

Allowing an employee to live on the ship, or to take the ship on a fishing trip.

(d) for * consideration , unless the consideration:

(i) consists of the provision of services by an employee of an enterprise carried on by the * recipient outside the indirect tax zone; or

(ii) is in respect of the recipient competing in a race or other sporting event (e.g. a prize).