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GST Cross Border Transport Services

Ron Jorgensen

07 April 2010
On 29 March 2010 draft legislation simplifying the operation of GST for the domestic transport of imported and exported goods was released for public comment.

Currently, GST is imposed on the domestic leg of international transport resulting in certain anomalies.

The amendments will impose any GST for the domestic leg on the importer of goods rather than the transport service provider. This will reduce compliance for non-resident transport companies (eg. non-residents will not have to register for GST, reverse charge GST or appoint a resident agent to administer the domestic legs of international transport contracts) and reduce the risk of penalties for failing to register.

The amendment will also extend the GST-free treatment for exported goods up to the place of export and for imported non-postal goods to the place of consignment, making certain loading, handling and customs clearance services GST-free in certain circumstances.

Transport and logistics providers should review their domestic and international transport contracts and their GST administration to prepare for the proposed change in law which will be effective from 1 July 2010.
 
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Kim Henderson

Principal & Accredited Specialist in Family Law

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