A New Tax System (Goods and Services Tax) Act. Australia

A New Tax System (Goods and Services Tax) Act

importation;

the value of the part of the actual importation that is a taxable importation is the proportion of the value of the actual importation (worked out as if it were solely a taxable importation) that the taxable importation represents.

13–99 Special rules relating to taxable importations

Chapter 4 contains special rules relating to taxable importations, as follows:

Checklist of special rules

Item

For this case…

See:

GST groups

Division 48

GST joint ventures

Division 51

Importations without entry for home consumption

Division 114

Representatives of incapacitated entities

Division 58

Resident agents acting for non-residents

Division 57

Valuation of re-imported goods

Division 117

Note: There are other laws that may affect the amount of GST on taxable importations. For example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5–5 in that Schedule).

Division 15—Creditable importations

15-1 What this Division is about

You are entitled to input tax credits for your creditable importations. This Division defines creditable importations, states who is entitled to the input tax credits and describes how to work out the input tax credits on importations.

15-5 What are creditable importations?

You make a creditable importation if:

(a) you import goods solely or partly for a *creditable purpose; and

(b) the importation is a *taxable importation; and

15–10 Meaning of creditable purpose

(1) You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise.

(2) However, you do not import the goods for a creditable purpose to the extent that:

(a) the importation relates to making supplies that would be *input taxed; or

(b) the importation is of a private or domestic nature.

(3) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside Australia.

(4) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:

(a) the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and

(b) you do not *exceed the financial acquisitions threshold.

(5) An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:

(a) the importation relates to making a *financial supply consisting of a borrowing; and

(b) the borrowing relates to you making supplies that are not input taxed.

15–15 Who is entitled to input tax credits for creditable importations?

You are entitled to the input tax credit for any *creditable importation that you make.

15–20 How much are the input tax credits for creditable importations?

The amount of input tax credit for a *creditable importation is an amount equal to the GST payable on the importation. However, the amount of the input tax credit is reduced if the importation is only *partly creditable.

Note: The basic rule for working out the GST payable on the importation is in section 13–20. However, the GST payable may be affected by other provisions in:

(a) this Act (for a list of provisions, see section 13–99); and

(b) other GST laws (for example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5–5 in that Schedule)).

15–25 Importations that are partly creditable

(1) An importation that you make is partly creditable if it is a *creditable importation that you make only partly for a *creditable purpose.

(3) The amount of the input tax credit on an importation that you make that is *partly creditable is as follows:

where:

extent of creditable purpose is the extent to which the importation is for a *creditable purpose, expressed as a percentage of the total purpose of the importation.

full input tax credit is what would have been the amount of the input tax credit for the importation if it had been made solely for a creditable purpose.

(4) The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which an importation is for a *creditable purpose.

15–99 Special rules relating to creditable importations

Chapter 4 contains special rules relating to creditable importations, as follows:

Checklist of special rules

Item

For this case…

See:

1AA

Annual apportionment of creditable purpose

Division 131

Fringe benefits provided by input taxed suppliers

Division 71