Case Note
The Problem
An Australian business specializing in retail and export faced a crucial tax challenge: Should it charge GST on sales to Australian customers who purchase goods for export overseas?
The Question
Can an Australian entity treat the supply of goods to Australian-based customers as GST-free when those goods are subsequently exported from Australia?
The Facts
- The business registers for GST in Australia.
- It sells locally made products to Australian customers, who typically export the goods to family and friends overseas.
- The business oversees the entire export process, including contracting a courier to handle international shipping.
The Solution
To resolve this issue, the accountants at EndureGo Tax took a hands-on approach. They interviewed the taxpayer, collected all relevant documents, and thoroughly researched the applicable GST legislation. Then, they prepared a strong private ruling request and submitted it to the Australian Taxation Office (ATO). They actively negotiated with the ATO, which ultimately approved the request and issued a favourable ruling.
According to the ATO’s decision, these sales qualify as GST-free under Item 1 of subsection 38-185(1) of the GST Act. The ruling confirmed that the business satisfied key criteria:
- The supplier (the Australian business) exported the goods within 60 days of receiving payment or issuing an invoice.
- The supplier took full responsibility for arranging international transport through a contracted courier.
As long as these conditions remain in place, the supply stays GST-free. This exemption removes the need to charge GST on qualifying transactions, offering the business a significant tax benefit and ensuring full compliance with Australian tax laws.
How EndureGo Tax Helps
EndureGo Tax Pty Ltd provides expert advice that helps businesses clearly understand their GST obligations and strategically apply GST-free provisions. By doing so, EndureGo ensures full compliance while maximizing tax advantages. As a result, this proactive approach empowers businesses to maximize GST refund opportunities and offer competitive pricing without the added burden of GST on exported goods.
Furthermore, by obtaining a favourable private ruling, EndureGo enabled the business to amend and object to prior BAS returns, securing a refund of over $400,000. This achievement clearly demonstrates how EndureGo’s expertise can help businesses maximize GST refund potential and recover what they are rightfully owed.
In addition, as a leading CPA accounting firm, EndureGo combines deep tax expertise with personalized service. With offices in Inner West Sydney (Ashfield), Northern Beaches (Belrose), and Adelaide, John and his experienced team stand ready to solve complex tax challenges. Whether you’re dealing with GST issues, navigating export transactions, or addressing broader tax concerns, EndureGo offers comprehensive, tailored solutions.
In today’s ever-changing tax environment, you need more than just answers—you need strategy. That’s why EndureGo crafts customized tax solutions aligned with your goals, delivering both clarity and financial confidence.
Ready to take the next step? Book your free 15-minute telephone consultation today at 1800 841 312. Let EndureGo turn your tax challenges into opportunities for growth and success.
