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Cover User
PopcornDisplays
Posts: 1
Registered: ‎21-08-2012
Australia
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Accepted Solution

GST on Export to New Zealand but invoice Australian company

Hi there,

I did try and find the answer to my query in other posts but was unsuccessful.

 

We have a client that we are doing work for and we will be shipping the final product to the New Zealand office.

 

my questions are:

1. If we ship to a New Zealand address but invoice an Australian company (australian address) do I charge GST?

2. If we ship and charge a New Zealand company there is no GST as it is a full export?

 

You help is appreciated.

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Ultimate Partner
jenniek
Posts: 1,482
Registered: ‎28-06-2007
New Zealand

Re: GST on Export to New Zealand but invoice Australian company

HI there,

I'm not up on Australian law - but from a kiwi point of view.

If you invoiced my NZ company and goods were coming from Aus - then I would not pay GST.

on Point 1 - I would have to say that because you are invoicing an Auatrailian company and you are an Australian company - then there would be a requirement to charge GST - regardless of where the goods were shipped to.

Maybe an Australian Partner can clarify this?

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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Ultimate Partner
Julie_A_C
Posts: 2,605
Registered: ‎07-09-2010
Australia

Re: GST on Export to New Zealand but invoice Australian company

Tax advice like this should be done through your Regsitered Tax Agent/BAS agent or Accountant or with guidance from the ATO web site and in need clarification from their hotline (if you can get through).

 

Here is an excerpt from the ATO site regarding exports

GST-free supplies

13. Broadly speaking, provided certain conditions are met, goods that are exported, or supplies of services or things other than goods or real property, that are for consumption outside Australia are GST-free.

14. If a supply is GST-free, no GST is payable on the supply.6 However, you can still claim an input tax credit for anything acquired or imported to make that GST-free supply.7

Export of goods7A

15. Even though a supply of goods is connected with Australia, if the goods are exported, that supply of goods may be GST-free under section 38-185.

16. Section 38-185 sets out supplies of goods which are GST-free exports. For example, Item 1 of the table in subsection 38-185(1) provides that a supply of goods is GST-free if the supplier exports the goods from Australia before, or within 60 days (or such further period as the Commissioner allows) after:

(a)  the day on which the supplier receives any of the consideration for the supply; or (b)  if, on an earlier day, the supplier gives an invoice for the supply - the day on which the supplier gives the invoice.8

However, the supply is not GST-free if the supplier reimports the goods into Australia.9

 


The above is on the basis that you do all the exporting ie dont send it to the Australian Company to ship, though if you read through the legislation there are circumstances mentioned that do enable you to still have the sale as GST Free if you do send it to them.

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
ph: 0417 927 654 email: accuratebooks7@gmail.com
Accurate Books Always (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
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