TAXATION RULING NO. ST 2436
ST 2436
SALES TAX : EXEMPTION FOR GOODS FOR OFFICIAL USE OF INTERNATIONAL ORGANIZATIONS
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FOI status:
May be releasedFOI number: I 1010807PREAMBLE
The purpose of this Ruling is to set out the provisions under which certain international organizations may obtain sales tax privileges on goods purchased for their official use.
2. Before 24 April 1988 the sales tax law covered limited sales tax exemptions for imported goods for use by specific international organizations, officials, executive heads and their families and officials of these organizations. Those exemptions then covered by items 74F, 74H, 74HA and 74HB in the Sales Tax (Exemption and Classifications) Act have been removed. They are redundant because other legislation covers the sales tax privileges available for specific international organizations and their officials and personnel.
3. Since 1963 a number of international organizations have been declared by Regulations to be international organizations to which the Act applies. Most have not established offices in Australia and the practical application of Australian privileges and immunities has been conferred only to the small number of organizations that have offices in Australia and to conferences etc held in Australia.
4. The following are declared international organizations that have established offices in Australia and have been conferred prescribed privileges and immunities-
- .
- Commissioner for the Conservation of Antarctic Marine Living Resources (CCAMLR) under the Commission for the Conservation of Antarctic Marine Living Resources (Privileges and Immunities) Regulations 1983
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- United Nations (UN) under the United Nations (Privileges and Immunities) Regulations 1986
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- Intergovernmental Committee for Migration (ICM) under the Intergovernmental Committee for Migration (Privileges and Immunities) Regulations 1986.
5. Those three organizations are prescribed to be entitled to the privileges and immunities specified in paragraph 7 of the First Schedule to the Act. Paragraph 7 provides for the exemption of the organization from the liability to pay or collect taxes other than duties on the importation or exportation of goods and of the income, property, assets and transactions of the organization from such taxes.
6. The CCAMLR and the UN are also prescribed to be entitled to the privileges and immunities specified in paragraph 6 of the First Schedule to the Act. Paragraph 6 provides for exemption from duties on the importation or exportation of-
- (a)
- goods imported or exported by the organization for its official use; and
- (b)
- publications of the organization imported or exported by it.
7. The relevant Regulations provide that, if taxable goods (not being publications of the organizations) are imported, manufactured or purchased by the CCAMLR and UN for sale by them no exemption from Australian sales tax would be available.
8. The Regulations confer to the High Officer of the CCAMLR and the UN (but not the ICM) privileges and immunities under Part I of the Second Schedule to the Act, namely -
"The like privileges and immunities (including privileges and immunities in respect of a spouse and children under the age of twenty - one years) as are accorded an envoy."The privileges, available to a high officer and family include the limited sales tax exemptions available to an envoy and family, that is, those available to a diplomatic agent and family under the Diplomatic Privileges and Immunities Act. Other officers are entitled to sales tax exemptions for imports of furniture and effects when first taking up duty in Australia. This Ruling does not expand on those privileges that relate only to individuals who are not Australian citizens or permanent residents of Australia. The Australian Customs Service administers the sales tax exemptions available together with any available customs and excise duties.
RULING
9. The CCAMLR and the UN are entitled to the following Australian sales tax privileges -
- (a)
- exemption from sales tax for goods imported by the organizations for their official use and not for sale
- (b)
- sales tax exemption for publications of the organizations imported by them
- (c)
- sales tax exemption for goods purchased from manufacturers and wholesalers by the organizations for their official use and not for sale. Because paragraph 7 of the First Schedule to the Act (refer paragraph 5 of this Ruling) limits exemption to "transactions of the organization" sales tax exemption is confined to purchases by the organizations from manufacturers and wholesalers, these being the transactions on which sales tax is ordinarily imposed. Exemption is not available for purchases from retailers.
10. The ICM is entitled to the sales tax privilege described in subparagraph 9(c) but is not entitled to the privileges described in subparagraphs 9(a) and (b).
11. The CCAMLR, the UN (through its organs such as the United Nations High Commissioner for Refugees and the United Nations Children's Fund) and the ICM, when claiming sales tax exemptions for eligible local purchases of goods for official use, should furnish to the vendor (being a manufacturer or wholesaler) a certificate in the form approved by the Australian Taxation Office.
12. The CCAMLR and the UN, when claiming sales tax exemptions for goods imported for their official use or publications of the organizations imported by them, should furnish to the Australian Customs Service a certificate in the form approved by the Australian Taxation Office.
COMMISSIONER OF TAXATION
11 August 1988
References
ATO references:
NO 87/5760-7
85/8422-2
85/2687-7
84/2423-3
Date of effect:
Immediate
Subject References:
INTERNATIONAL ORGANIZATIONS
EXEMPTION FROM SALES TAX OF GOODS FOR OFFICIAL USE BY
Legislative References:
INTERNATIONAL ORGANIZATIONS (PRIVILEGES AND IMMUNITIES) ACT 1963