Issue
Is the entity, a supplier of goods that is not registered for goods and services tax (GST), 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 a supplier of goods. The entity is neither registered nor required to be registered for GST. The entity sells goods in the course of its enterprise. The entity's supply of the goods is connected with Australia.
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 in the course of its enterprise and the supply is connected with Australia. However, the entity is neither registered nor required to be registered for GST.
Therefore, as the entity's supply does not meet the requirements of section 9-5 of the GST Act, the entity is not making a taxable supply when it sells goods.