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37.
Press
Release - Clearing
Up A Few GST Blues
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15/01/2003 |
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PRESS
RELEASE
Wednesday 15th January 2003
CLEARING UP A FEW GST BLUES
In
recent days there have been several reports that overseas buyers coming to
Australia, are unable to keep their yearlings that they have purchased GST free
in Australia for more than 60 days. In most cases this is not correct. In fact,
by applying to the Australian Taxation Office and receiving a GST number, not
only will the overseas buyers have the GST on their purchases refunded, but they
will also have all their GST on agistment, veterinary bills, handling costs and
floating refunded. Further more, the horses can stay in Australia for an
indefinite period so they can be fully mature and broken in when they leave to
their racing country.
The process is very simple. The overseas buyer can personally apply, or can use
an agent to apply to the ATO for a GST registration number. Evidence must be
provided to satisfy the enterprise test, that is part of the GST Act, such as a
copy of a certificate of registration, or whatever the ATO requires, and either
the agent or the overseas buyer must have a bank account in Australia.
The Australian Taxation Office has recently further improved it's service, by
agreeing that a statement from the revenue authority in the home country
certifying the status of the non resident will be sufficient. The Australian
Taxation Office has had officers on the Gold Coast at the Magic Million Sale to
assist the process, and they have indicated that they will have officers at
other sales.
There are still a few problems in relation to those buyers who can not meet the
enterprise test, but talks are continuing to overcome these problems in time for
the sales in Adelaide and Perth. These mainly relate to individual purchasers
from Asia. Buyers from New Zealand normally ship their purchases back home
within the 60 days GST free period.
Compared to other countries the GST in Australia is still very new and the
Thoroughbred Breeding Industry and the Australian Taxation Office are working
together to ensure that the GST Act is complied with, but in a way that assists
our export market.
As agents, buyers and breeders become more familiar with the process there will
be fewer problems. The simple rule is that overseas buyers should register for
GST and they will find then that Australia is the best place to buy
thoroughbreds.
Richard Turnley
President
Thoroughbred Breeders Australia
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