INSTRUCTIONS TO APPLY FOR A PRIVATE GST RULING FROM THE ATO

Discussion in 'General Precious Metals Discussion' started by Blockhead, Jun 30, 2011.

  1. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,744
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    BrisBanal
    I have been approached by a number of members recently who have been having difficulties with being falsely charged GST on bullion imports over $1000 by Fed Ex and have been forced to go through the annoying process of applying for a PRIVATE GST RULING from the ATO.

    I have gone through this horrible process successfully and have been happy to help people out, i thought it might be more useful to put this information into a permanent thread for easy reference. I am not even remotely close to anything resembling a tax expert, i just happen to have gone through this process successfully so am merely sharing the knowledge and insights i have gained to the rest of SS. Please feel free to chime in if you think anything i have said is incorrect or if you have anything to add. Sorry for the long post.

    Precious Metals and GST

    http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR200310/NAT/ATO/00001

    Under the GOODS AND SERVICES TAX RULING 2003/10 (GSTR 2003/10) a PRECIOUS METAL is defined in section 195-1 as being GOLD or SILVER of 99.5%+ or PLATINUM of 99%+ fineness.

    The metal gold silver or platinum must also be deemed to be in an INVESTMENT FORM.

    There are a number of ways that indicated investment form, the primary being that the metal is traded a priced determined by REFERENCE TO THE PREVAILING SPOT PRICE. This means the price will go up and down in accordance to movement in spot price. A manufacturing premium is still applicable it does not mean the metal must trade AT spot price, only that the price is referenced to spot. Jewellery is not considered as an investment form, neither are numismatics as the price is determined by rarity and condition, not spot price. Proof coins are also traded at an 'issue price' which is not considered to be referenced to spot price.

    Another requirement to determine investment form is that the metal HAS BEEN REFINED BY A REFINER OF PRECIOUS METALS. This means that the refiner is an "entity that regularly converts or refines precious metal in carrying on its enterprise." Home poured ingots are not recognised as investment form. This section of the GST act also stipulates that the supply must be made to a DEALER IN PRECIOUS METAL. This is where the confusion typically sets in with Fed Ex Customs brokers. There is a separate provision in section 40-100 that allows for INPUT TAXED SUPPLY that means a NON DEALER in PRECIOUS METAL can still be exempt from GST. If you are NOT A DEALER you will have to make reference to this section.

    The metal gold silver or platinum must also be in a TRADEABLE FORM. Specifically a BAR, WAFER or COIN.

    The metal gold silver or platinum must BEAR AN ACCEPTED MARK OR CHARACTERISTIC. This means it must bear an internationally accepted hallmark or bear some mark that IDENTIFIES AND GUARANTEES IT'S FINENESS AND QUALITY.


    When you apply for a private ruling, you will need to establish that the bullion product you are importing satisfies the above requirements to be deemed a PRECIOUS METAL for the purposes of GST. You will need to demonstrate that price is derived from spot price and provide an image of the coin, bar or wafer that demonstrates that it bears the appropriate marks or characteristics. Provide links to the website where you purchased the bullion to demonstrate that the price is derived from spot. You can also if you wish address specific sections of the code in your application in the section 9 Your argument and references

    SECTION 40-100 http://www.customs.gov.au/site/page5350.asp#e946


    This is a confusing document, the key aspect to focus on is that it mentions that
    This means that if you make an import for HOME CONSUMPTION, if the import satisfies the criteria of a PRECIOUS METAL it will be INPUT TAXED AT ZERO PERCENT as opposed to "GST-free". The result is the same but the terminology is different.
    To summarise, an import to a DEALER is GST-free, an import for HOME CONSUMPTION is INPUT TAXED.


    FILLING OUT THE APPLICATION.

    The application can be downloaded here http://www.ato.gov.au/docs/nat13742.rtf (Update 14th Nov 2014 - try https://www.ato.gov.au/uploadedFiles/Content/CS_C/downloads/QC_19147_download.pdf)

    You must enter your personal details and include your TAX FILE NUMBER. Even though they say it is optional they WILL NOT ISSUE A PRIVATE RULING WITHOUT YOUR TAX FILE NUMBER.

    Section C QUESTIONS AND FACTS

    7 Questions and issues for the ruling.

    You must provide a specific question that the ruling will answer. In this case the 2 questions you want answered are

    Is this bullion product considered a PRECIOUS METAL as defined in the GST ACT?

    Is GST payable on importation of this bullion product?

    8 Facts describing the scheme or circumstance

    Write a specific description of your situation. An example would be
    Be as specific as possible. Include links to the website of where you purchased the bullion from. Provide as much info as you can to make the job as easy as possible for the ATO officer. ATO officers like it when their job is easy.

    9 Your argument and references

    This is where you make it as easy as possible for the ATO. Using the above information, clearly explain how your specific bullion product satisfies the criteria of PRECIOUS METALS. Provide links to the specific sections, address each section in bullet points or paragraphs, for example



    CHECKLIST

    complete the checklist, tick YES for 13 Are you seriously considering the scheme or arrangement? and 14 Are you reasonably certain of the facts you set out?

    complete the declaration, then print out the form and sign it. You can then either post or fax it or deliver in person to the ATO. I just took mine in to an ATO office in person and i received a receipt that it had been lodged.


    THAT'S ALL THERE IS TO IT, I HOPE THIS HELPS.

    REMEMBER, PREVENTION IS BETTER THAN CURE, BOYCOTT FEDEX WHENEVER POSSIBLE AND ONLY HAVE SHIPMENTS SENT BY UPS (THE PRIVATE COURIER COMPANY, NOT USPS THE UNITED STATES POSTAL SERVICE) AND YOU SHOULD AVOID THIS UNNECESSARY WASTE OF EVERYBODY'S TIME AND MONEY

    CHEERS,
    BH
     
  2. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,744
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    BrisBanal
    i figure if it's passable quality maybe GP can just sticky it, then it'll be easy to find. I'm sure a lot more people will take a look at it in the morning.
     
  3. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

    Joined:
    Apr 15, 2010
    Messages:
    5,003
    Likes Received:
    450
    Trophy Points:
    83
    Location:
    Melbourne
    Excellent work there. Thanks.
     
  4. rbaggio

    rbaggio Active Member Silver Stacker

    Joined:
    Aug 5, 2010
    Messages:
    4,390
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    Australia
    +1 great work.

    I know of 1 member here who imported from APMEX, some bullion coins were slabbed/graded and some were in capsules. The slabbed/graded coins, even though they were traded for bullion prices on APMEX (high mintage gold pandas) were pinged for GST on entry to Australia.
     
  5. Guest

    Guest Guest

    +1 for sticky
     
  6. Maggie

    Maggie New Member Silver Stacker

    Joined:
    Feb 9, 2011
    Messages:
    6,346
    Likes Received:
    2
    Trophy Points:
    0
    Thanks a million- You're THE man!
     
  7. hiho

    hiho Active Member Silver Stacker

    Joined:
    Apr 4, 2011
    Messages:
    7,966
    Likes Received:
    19
    Trophy Points:
    38
    Location:
    South Brisbane
    BLOCKHEAD
     
  8. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,744
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    BrisBanal

    See that's still pretty ambiguous, i would have thought the slabbed coins would only be taxed IF the total valule of them exceeded $1000. If they're slabbed, you're out of luck because "it must have the character of the metal gold, silver or platinum and not the character of items, such as jewellery and numismatic coins, made from those metals." Even though they are sold as bullion, you're going to have a hard time convincing a broker or tax agent if they're graded and slabbed. Only option is to remove the slab and ship them as raw coins.
     
  9. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,744
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    BrisBanal
    ^ ahh, gold pandas, yeah, you're gonna exceed $1000 value pretty quickly.
     
  10. bron suchecki

    bron suchecki Active Member Silver Stacker

    Joined:
    Jul 10, 2009
    Messages:
    1,269
    Likes Received:
    2
    Trophy Points:
    36
    Location:
    Perth, Western Australia
    Very good. Just to be picky. Quote "the first supply of precious metals after its refining by the refiner, or on behalf of the supplier will only be GST-free if the recipient of the supply is a dealer in precious metals"

    Emphasis on "first supply" and "after its refining". A dealer in precious metals importing coins is not first supply after refining, so not GST-free. Any import of finished coins/bars by a dealer will be Input Taxed status.
     
  11. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,614
    Likes Received:
    262
    Trophy Points:
    83
    Location:
    Sydney
    That plastic thing? That's just protective packaging to stop them being damaged. The label just confirms that the coin inside is bullion.
     
  12. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,744
    Likes Received:
    5
    Trophy Points:
    38
    Location:
    BrisBanal
    That's a very good point, as long as you can demonstrate pricing per spot you could probably get that approved.
     
  13. Yippe-Ki-Ya

    Yippe-Ki-Ya New Member

    Joined:
    Feb 23, 2011
    Messages:
    5,619
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    The Land of Guilty by Default
    hey Hobo

    Just a quick question - if you import under $1000 worth of PM. are you still screwed for the $66 "admin" fee or "clearance" fee or whatever BS name they have for it?
    I recently imported over $1000 worth via UPS and had no problems, but had to pay this $66 BS fee...

    was just wondering if it was also payable on purchases < $1000 ?
     
  14. Yippe-Ki-Ya

    Yippe-Ki-Ya New Member

    Joined:
    Feb 23, 2011
    Messages:
    5,619
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    The Land of Guilty by Default
    BLOCKHEAD is THE GAME!! ;)
     
  15. Maggie

    Maggie New Member Silver Stacker

    Joined:
    Feb 9, 2011
    Messages:
    6,346
    Likes Received:
    2
    Trophy Points:
    0
    So log as import $990.00 your safe from entry fee.
     
  16. zachary898

    zachary898 Member

    Joined:
    Sep 11, 2010
    Messages:
    132
    Likes Received:
    3
    Trophy Points:
    18
    Location:
    Brisbane
    Nice work, Thanks m888
     
  17. LvM

    LvM Member

    Joined:
    Jan 21, 2011
    Messages:
    123
    Likes Received:
    0
    Trophy Points:
    16
    Location:
    Australia
    Recently received a shipment of over $1000 of bullion delivered by FedEx.

    Once the package arrived at Customs they emailed me a declaration to sign and fax back and once this was done they did not require any payment of GST.

    It looks like they have finally sorted things out. Everything went smoothly and service was excellent. There was the approx. $52 clearance fee though.
     
  18. undftd

    undftd New Member Silver Stacker

    Joined:
    Aug 3, 2011
    Messages:
    710
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Brisbane
    I am in the final stages of getting gst back. Thank you blockhead. Really did come in handy when getting private ruling. Saved me a lot of time and anger.

    Next stackers meet, make sure you introduce yourself to me, ill shout you a beer.
     
  19. notanother

    notanother New Member

    Joined:
    Dec 2, 2011
    Messages:
    25
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    SE Qld
    I must be missing something here? There is plenty of gold in Australia, no gst attached to it if bought for cash from a local coin shop.

    There is also NO record with the government, the shipper, the shippers dispatcher, the hundred odd people along the path of travel that may see it and your name and address, nor a record in the mind of the delivery drivers, and their brothers, and uncles, and mates.

    Perhaps I'm being paranoid, but I believe in the power of negative thinking. It's helped keep me out of the stock market for half a decade now.
     
  20. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

    Joined:
    Jun 5, 2010
    Messages:
    15,434
    Likes Received:
    1,183
    Trophy Points:
    113
    Location:
    here there everywhere
    I agree ,I just shop locally with no paperwork
    But that's the advantage I have being in Melbourne :D
     

Share This Page