Business travellers to Australia pay GST on most goods and services. For example, Australian hotel costs, conference fees and taxi fares all include GST. Invoices for these expenses will show that GST has been charged. Contact EasyGSTrefunds to let us help arrange for your GST refund.
Goods Exported from Australia
If your business outside of Australia pays for goods from an Australian supplier and these goods are not exported from Australia within 60 days of payment, then GST will apply to the transaction. If your business outside of Australia pays to transport goods within Australia prior to them being exported from Australia, these transport costs may include GST. These are just two examples of how a purchase of goods exported from Australia may include a payment of GST.
In general terms, GST is not intended to apply to goods and services which are exported from Australia and there are specific provisions in the GST law designed to make exports GST-free. Despite this, overseas businesses which purchase Australian goods and services often find that the price payable includes GST.
For details of Australia's exports and the relevant provisions which may make these exports GST-free, click here. The easy way to tell if you have been charged GST on goods exported from Australia is to take a look at the contract or purchase invoice, which will clearly indicate if GST is included in the purchase price. If you have paid GST, please contact EasyGSTrefunds.
General Background Information
Australia's GST was introduced with effect from 1 July 2000 and is currently imposed at a rate of 10%.
Through a registration and tax return process, it is usually possible for businesses outside of Australia to claim a refund of GST that they have paid. To be entitled to a refund, it is important to retain evidence of the payment of GST. The required evidence is a tax invoice. Most invoices issued by Australian businesses are in the form of a tax invoice.
Australia's GST is equivalent to consumption taxes in other parts of the world. In the European Union, the consumption tax is called value added tax or VAT. Some other countries, such as New Zealand and Canada, also refer to their consumption tax as a goods and services tax.
Australia's main GST provisions are set out in a piece of legislation called the A New Tax System (Goods and Services Tax) Act 1999. This legislation, as amended, includes over 680 sections and consolidated versions run to over 580 pages, not including the relevant regulations. Administration of the GST is handled by the Australian Taxation Office. The views of the Australian Taxation Office are expressed in Public Rulings and there are more than 70 Public Rulings concerning the operation of the GST. The ultimate arbiters of the meaning of the GST legislation are the Australian courts and the volume of relevant case law is growing.
Australia's GST in historical perspective
|Ancient Egypt||Taxes were levied to build monuments and temples. During one period, scribes collected a tax on cooking oil.
Australia's GST is a broad-based consumption tax, but cooking oil does not attract GST.
|Ancient Greece||In times of war, the Athenians imposed a tax called the eisphora. When additional resources were gained through the war effort, the resources were used to refund the tax.
A refund of tax is not a new concept. EasyGSTrefunds can help your business gain a refund of GST.
|Biblical times||The Bible notes an expectation that farmers would provide one tenth of their crops to the king in order to help feed the poor.
Australia's GST is currently at 10%.
|Roman Empire||During the time of Julius Caesar, a 1% sales tax was imposed. Under Caesar Augustus, sales tax was 4% on slaves and 1% on everything else.
Over time, there have been rate increases in most countries with a GST or other consumption tax.
|Medieval England||The Magna Carta of 1215 provides a guarantee of no taxation without representation.
Australia's GST is not intended to impose taxation on businesses outside of Australia.
|Reformation in England||The first modern income tax was introduced in England in 1719. The United States followed suit in 1862.
Australia's GST was introduced to reduce reliance on personal income tax as a means of raising revenue.
|20th Century||Sales tax was introduced in Australia in the 1930s.
Australia's GST has replaced sales tax.
|Modern times||Australia's GST was introduced with effect from 1 July 2000.
Your business may have been paying Australian GST since 1 July 2000. Refunds of GST are available for four years.
|Today||EasyGSTrefunds helps your business to claim a refund of GST.
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