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39.
TBA
Clarifies GST Reports
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15/01/2003 |
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Thoroughbred
Breeders Australia president Richard Turnley has moved to clarify what he feels
are incorrect reports concerning the application of the good and services tax to
overseas buyers of Australian-bred yearlings.
Turnley issued a statement on January 15, claiming recent reports have painted
an incorrect picture of the GST rules as they apply to overseas buyers.
“Reports have circulated 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,” Turnley said.
“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.”
Turnley said the GST process for an overseas buyer was simple.
“The overseas buyer can personally apply, or can use an agent to apply to the
ATO for a GST registration number,” Turnley said.
“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.”
Turnley said the Australian Taxation Office has recently 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 had officers on the Gold Coast at the Magic
Million sale to assist the process, and Turnley expects they will be in
attendance at other Australian sales.
Turnley admitted some buyers cannot meet the enterprise test, but said talks are
continuing with the ATO to hopefully overcome these problems in time for the
sales in Adelaide and Perth.
It has been argued that numerous Asian buyers wish to keep their anonimity when
they buy horses in Australia and do not want to register for GST.
Turnley said that compared to other countries, the GST in Australia is still
very new. He said the breeding industry and ATO 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,” Turnley said..
“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.”
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