Australian Tax Office changes guidance on GST related to international flights and voyages
Monday, 12 August 2013
On 31 July 2013, the Australian Taxation Office issued an update to its Public Ruling regarding GST on stores and spare parts for international flights and voyages. The update reflects legislative developments which in some circumstances restrict a vendor's ability to refund GST when the vendor has incorrectly applied GST. For example, it would be incorrect for a vendor to apply GST to sales of stores and spare parts for use on aircraft and ships with international destinations. The new legislation took effect from 1 July 2013 and can be viewed here. A corresponding Practice Statement has also been issued which describes the circumstances in which the Australian Taxation Office will allow a recipient which has wrongly been charged GST to claim an input tax credit for that amount.