Private ruling: GST and sales of goods overseas
Published: November 2013

Ruling: Q1: Are your sales of overseas purchased goods to overseas customers supplies that are connected with Australia pursuant to section 9-25 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No.

Relevant facts and circumstances: You are a seller of goods via online forums. You have received amounts paid for pre-orders for the sale of the goods. The majority of these sales are to overseas customers. You intend to purchase goods from a manufacturer that is located outside Australia and store these goods in different locations throughout the world (none of which are in Australia). You then intend to ship these goods to the overseas customers. The goods will never enter Australia.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-25

Reasons for decision: Summary: Your sales of overseas purchased goods to overseas customers are not supplies that are connected with Australia pursuant to section 9-25 of the GST Act. | Detailed Reasoning - Detailed reasoning: For your supplies of goods to be connected with Australia, the supplies need to meet the requirements of section 9-25 of the GST Act. Supplies of goods are specifically dealt with in subsections 9-25(1), 9-25(2) and 9-25(3) of the GST Act: | Detailed Reasoning - Supplies of goods wholly within Australia: (1) A supply of goods is connected with Australia if the goods are delivered, or made available, in Australia to the *recipient of the supply. | Detailed Reasoning - Supplies of goods from Australia: (2) A supply of goods that involves the goods being removed from Australia is connected with Australia . | Detailed Reasoning - Supplies of goods to Australia: (3) A supply of goods that involves the goods being brought to Australia is connected with Australia if the supplier either: (a) imports the goods into Australia; or (b) installs or assembles the goods in Australia. Your supplies of goods from manufacturers or storage overseas to overseas customers neither involve the goods being: · delivered or made available in Australia; · removed from Australia; or · imported, installed or assembled in Australia. Therefore KPL's intended supplies are not connected with Australia and remain outside the GST system.