GST registered businesses can sell goods GST free when the goods are going to be exported overseas.
There are 3 situations where this can apply:
1 The vendor is an exporter
2 The vendor is organising the export of the goods on behalf of the purchaser
3 The vendor has supplied the goods to the purchaser who intends to export the goods
For the supply to be GST free the following conditions must be met:
– the goods are exported within 60 days of the purchase
– the goods are not used before export
– the goods are not altered before export (other than to be packed for shipping)
– the purchaser is notGST-registered.
Documentaion must be kept by the vendor to prove that the goods have been exported.
For a list of documentation required please see theATO’s GST Ruling GSTR 2002/6 paragraph 279-285
Give us a ring to discuss how this applies to your own business.