Issue
Is the entity, an individual not carrying on an enterprise, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells goods?
Decision
No, the entity is not making a taxable supply under section 9-5 of the GST Act when it sells goods.
Facts
The entity is an individual that is not carrying on an enterprise. The entity sells goods. The entity's supply of the goods is connected with Australia. The entity is not registered for goods and services tax (GST).
Reasons for Decision
Under section 9-5 of the GST Act an entity makes a taxable supply if: • the entity makes a supply for consideration; • the supply is made in the course or furtherance of an enterprise that the entity carries on; • the supply is connected with Australia; and • the entity is registered, or required to be registered.
The entity is making a supply that is for consideration and the supply is connected with Australia. However, the entity is neither making the supply in the course or furtherance of an enterprise that it carries on nor is it registered for GST. Additionally, as the entity is not carrying on an enterprise, it is not able to register for GST.
Therefore, as the entity's supply does not meet all the requirements of section 9-5 of the GST Act, the entity is not making a taxable supply when it sells goods.