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?
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.