Hi I am getting my BAS done by my accountant and I was informed that I will have to pay GST even on the 999 bullion. She then show me page 23 of "Completeing the GST labels on your activity statement", I remember reading somewhere here that 999 bullion is GST free however I couldn't find anything on the government site, please help.
Not sure which government site you searched, but the ATO site has GSTR2003/10: "Goods and Services Tax: What is 'precious metal' for the purposes of GST". http://law.ato.gov.au/pdf/pbr/gstr2003-010.pdf
Unless it's proofs etc, there is no GST. Ask her to do more research or recommend another accountant to you.
999 bullion is input taxed, not GST free, both have 0% gst but there is a big difference on your ability to claim GST back on your "inputs" ie expenses
Thanks guys for the input, however we are concern with the wording "The first supply of precious metal after its refining may be GST-free under section 38-385" Does that mean only the first supplier from the refiner is GST free, ie if I buy from Perth Mint there is no GST however when I resell them am I suppose to charge GST on them?
No - that's only part of how PMs are treated for GST. Refer to whinfell's link for more info. As Bron said, they are treated as input-taxed, so no GST is charged on the sales downstream.
Also note where is says "in an investment form" this has been challenged on many occasions where if the Mint is not deemed to be a recognised Mint or the end product is not in a recognised form it may not be considered "in an investment form" and hence GST is applied.
