Importantly, this information and the ATO advice to Shipping Lines and their local Australian Agents, should help to ensure that no GST is applied to port handling services inside the terminal precinct.
The ATO accepts that international air and shipping lines should use their contracts for international carriage (i.e. Airway Bills and Bills of Lading, respectively) to determine the place of consignment under the GST law. In these circumstances, the ATO allows shipping and airlines to assume that the place of consignment is at the terminal gate of the port or airport of discharge as specified on the relevant Bill (Bill of Lading or Airway Bill). This means that the transport and handling of goods (including issuing and processing documentation) at or up to the terminal gate at the port or airport of discharge, made by the supplier under the contract for international carriage, will be GST-free as these services are made at, or prior to, the place of consignment.
The information also says, in part:
Value of the taxable importation includes GST-free amount
The value of the taxable importation of goods should include the following:
- The customs value of the goods
- The amount paid or payable to:
- transport and insure the goods to the place of consignment in Australia;
- load, handle and facilitate the transport of goods up to the place of consignment, provided the amount is not reflected in the cost of transport or customs value; and
- Any customs duty and wine equalisation tax that may be payable.
For the full ATO report, go to: https://www.ato.gov.au/business/gst/in-detail/rules-for-specific-transactions/international-transactions/gst-and-international-freight-transport/
