Issue
Is the entity, an individual, required to pay goods and services tax (GST) under section 13-15 of the A New Tax System (Goods and Services Tax) 1999 (GST Act), on their importation of paintings, where they purchased the paintings before 1 July 2000 but imported them into Australia after 1 July 2000?
Decision
Yes, the entity is required to pay GST under section 13-15 of the GST Act, on their importation of paintings, where they purchased the paintings before 1 July 2000 but imported them into Australia after 1 July 2000.
Facts
The entity is an individual. The entity purchased paintings overseas before 1 July 2000 and imported these paintings into Australia after 1 July 2000.
The importation of the paintings meets the requirements of a taxable importation in section 13-5 of the GST Act. The importation of the paintings is not a non-taxable importation as defined in section 13-10 of the GST Act.
Reasons for Decision
Section 13-15 of the GST Act provides that an entity must pay the GST payable on any taxable importation that it makes. However, section 7 of the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act) provides that GST is only payable on a supply or importation to the extent that it is made on or after 1 July 2000.
Although the entity purchased the paintings before 1 July 2000, they did not import the paintings into Australia until after 1 July 2000. Therefore, as it is the importation to which the GST applies and the importation was made after 1 July 2000, the entity is required to pay the GST on that importation if it is a taxable importation.
The entity's importation meets the requirements of a taxable importation under section 13-5 of the GST Act and is not a non-taxable importation as defined under section 13-10 of the GST Act. Therefore, the entity's importation of the paintings is a taxable importation.
As such, the entity is required to pay GST under section 13-15 of the GST Act, on their importation of paintings where they purchased the paintings before 1 July 2000 but imported them into Australia after 1 July 2000.