Australia

A New Tax System (Goods and Services Tax) Act


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apportionment of creditable purpose

      Division 131

      1

      Associates

      Division 72

      2

      Company amalgamations

      Division 90

      2A

      Compulsory third party schemes

      Division 79

      3

      Financial supplies (reduced credit acquisitions)

      Division 70

      3A

      Fringe benefits provided by input taxed suppliers

      Division 71

      4

      Gambling

      Division 126

      5

      GST groups

      Division 48

      6

      GST joint ventures

      Division 51

      6A

      GST religious groups

      Division 49

      7

      Insurance

      Division 78

      8

      Non-deductible expenses

      Division 69

      8A

      Offshore supplies other than goods or real property

      Division 84

      9

      Pre-establishment costs

      Division 60

      10

      Reimbursement of employees etc.

      Division 111

      10A

      Representatives of incapacitated entities

      Division 58

      11

      Resident agents acting for non-residents

      Division 57

      13

      Sale of freehold interests etc.

      Division 75

      14

      Second-hand goods

      Division 66

      15

      Settlement sharing arrangements

      Division 80

      16

      Time limit on entitlements to input tax credits

      Division 93

      Part 2–3—Importations

      Division 13—Taxable importations

      13-1 What this Division is about

      GST is payable on taxable importations. This Division defines taxable importations, states who is liable for the GST and describes how to work out the GST on importations.

      Note 1: This Division applies whether or not you are registered.

      Note 2: Things other than goods that are supplied overseas for use in Australia (and are therefore in that sense “imported”) are not taxable importations, but they can attract GST under Division 84.

      13-5 What are taxable importations?

      (1) You make a taxable importation if:

      (a) goods are imported; and

      (b) you enter the goods for home consumption (within the meaning of the Customs Act 1901).

      However, the importation is not a taxable importation to the extent that it is a *non-taxable importation.

      Note: There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.

      (3) However, an importation of *money is not an importation of goods into Australia.

      13–10 Meaning of non-taxable importation

      An importation is a non-taxable importation if:

      (a) it is a non-taxable importation under Part 3–2; or

      (b) it would have been a supply that was *GST-free or *input taxed if it had been a supply.

      13–15 Who is liable for GST on taxable importations?

      You must pay the GST payable on any *taxable importation that you make.

      13–20 How much GST is payable on taxable importations?

      (1) The amount of GST on the *taxable importation is 10 % of the *value of the taxable importation.

      (2) The value of a *taxable importation is the sum of:

      (a) the *customs value of the goods imported; and

      (b) the amount paid or payable:

      (i) for the *international transport of the goods to their *place of consignment in Australia; and

      (ii) to insure the goods for that transport;

      to the extent that the amount is not already included under paragraph (a); and

      (ba) the amount paid or payable for a supply to which item 5A in the table in subsection 38-355(1) applies, to the extent that the amount:

      (i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

      Note: Division 81 excludes certain taxes, fees and charges from the provision of consideration.

      (ii) is not already included under paragraph (a) or (b); and

      (c) any *customs duty payable in respect of the importation of the goods; and

      (d) any *wine tax payable in respect of the *local entry of the goods.

      (2A) If an amount to be taken into account under paragraph (2)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.

      (3) The Commissioner may, in writing:

      (a) determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (2)(b); and

      (b) determine the way in which the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is to be worked out for the purposes of that paragraph; and

      (c) in relation to importations of a specified kind or importations to which specified circumstances apply — determine that:

      (i) the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of paragraph (2)(b), to be zero; or

      (ii) the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is taken, for the purposes of that paragraph, to be zero.

      13–25 The value of taxable importations that are partly non-taxable importations

      If an importation (the actual importation) is:

      (a) partly a *taxable importation; and

      (b)