Customs and serials - the issues

Tom Marshall, Customs tax reform, 10 July 2000

The New Tax System

Contents

• Taxable Supplies
• GST-free Supplies
• Taxable Importations
• Non taxable Importations
• Calculation and payment of GST on imports
• Deferral of GST
• Australian Business Number

Scope of GST
The GST Act provides that:

• GST is payable on *taxable supplies and *taxable importations [7-1(1)]
• You must pay the GST payable on any *taxable supply that you make [9-40]
• You must pay the GST payable on any *taxable importation that you make [13-15]

Taxable supplies

9-5: A supply is a taxable supply if

• It is made for *consideration [9-15]; and
• It is made in the course of carrying on an *enterprise [9-20]; and
• It is *connected with Australia [9-25]; and
• The supplier is *registered for GST or *required to be registered [Division 23].

GST-free supplies of interest to importers include:

Supplies of

• basic foods [38-A]
• medical aids and appliances [38-45]
• cars for use by disabled people [38-P]
• goods for export [38-E]

*Taxable Importations include

• importations into Australia of goods that are entered for home consumption [Div 13]; and
• other importations for which the Customs Act does not require an entry [114-5] including
  • personal effects of passengers or and crew
  • low value consignments by post
  • other low value consignments
  • special clearance goods
• Temporary Importations under s162 or s162A [Div 171]

Non Taxable Importations

• Importations of goods that would be GST-free if supplied within Australia.
• Importations that qualify for certain customs duty concessions.

Calculation of GST on imports

• GST is calculated as 10% of *value of the taxable importation [13-20 (1)]
• Value of *taxable importation = customs value + [13-20 (2)(a)]
• customs duty + [13-20 (2)(c)]
• amount paid or payable for the *international transport of the goods to their *place of consignment in Australia and insure the goods for that transport, to the extent that the amount is not included in (a) + [13-20 (2)(b)]
• any *wine tax payable [13-20 (2)(d)]

Payment of GST on imports

• GST is payable at the same time, at the same place, and in the same manner as *customs duty is payable on the goods in question (or would be payable if the goods were subject to customs duty) [33-15 (a)]; or
• Within such further time specified in the regulations, and at the place and manner specified in the regulations [33-15 (b)]

Working out GST on imported goods

Australian Business Number

• Australian Business Register
• Customs Commercial Systems
• Interim ABN's
• Safety Net for late applicants