Due to changes in GST legislation, from 1 July 2011 you can sell a new recreational boat GST-free if the boat is exported from Australia within a specified 12-month period.
To sell a boat GST-free, it:
* must be a new recreational boat
* cannot be used for a disqualifying activity before it is exported.
What is a new recreational boat?
New recreational boats are newly constructed, and designed and fitted out mainly for private recreational pursuits or hobbies.
* must not be substantially re-constructed
* cannot have been sold (unless as trading stock), leased or used since they were constructed
* cannot be second-hand boats or commercial ships (for example a trawler or cargo ship).
To be GST-free, new recreational boats you sell cannot be used for any commercial activity or financial gain by either the purchaser or any other person while the boat is in Australia. In addition to this, a new recreational boat cannot be used for any of the following purposes:
* as security for the performance of an obligation, other than as security for the loan used to purchase it
* in carrying on an enterprise in Australia
* in carrying on an enterprise outside Australia, other than for activities done as a private or recreational pursuit or hobby
* to obtain any payment, other than
* as an employee providing services to an enterprise carried on by the purchaser outside Australia
* winnings paid from a race or other sporting event in which the purchaser competes.
For the sale of a boat to be GST-free, either you or the purchaser must export it from Australia within 12 months from the receipt day, unless the ATO allows an extension.
The receipt day is the earliest day on which one or more of the following events occur:
* the purchaser takes physical possession of the boat
* you receive the final instalment (if you receive payment in instalments under a contract that requires the boat to be exported)
* you give an invoice for the final instalment if you receive payment in instalments under a contract that requires the boat to be exported.
* The purchaser can also only use the boat for recreational/non-commercial purposes while it is in Australia.
To be eligible to use the extended GST-free period, you must:
* maintain knowledge of both the use and whereabouts of the boat for up to 12 months
* obtain documentary evidence as proof that the boat has been exported
* obtain a purchaser declaration as proof of non-commercial use when the boat is exported.
More at http://www.ato.gov.au/content/00285170.htm