GST on Exports That Have Not Been Exported

Q&A Tax

Question :

Today’s question regarding the GST on export sales.

As known, there is NO GST be recognised for the Australian entity exporting to overseas.

What if in a case where the billing is to an overseas entity, but the goods stay in Australia?

What is the GST implication here?


Answer :

If the company is registered for GST, then the sale of an asset in connection with their enterprise
would generally trigger a GST liability. However, there are some special rules dealing with export sales.

Section 38-185 GST Act ensures that a supply of goods can be GST-free if they are exported from

Australia within 60 days of the earlier of the following:

  • The day the client receives any of the consideration for the supply; or
  • The day the client provides an invoice for the supply.

If the goods have been sold to a purchaser based overseas then it may be possible to treat the sale as
being GST-free, but you would need to see whether they have been exported by the client within the
60-day period noted above.

If the goods have been sold to a foreign entity but the goods are not exported within the 60-day
period noted above then GST is likely to still be triggered.

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