In Travelex Ltd v Commissioner of Taxation [2010] HCA
33, the High Court held, by a three to two majority, that the
supply of foreign currency by Travelex Ltd
(Travelex) on the departures side of the Customs
barrier at Sydney International Airport was GST-free. In doing so,
the court provided guidance on the interpretation of the GST-free
exported services rules and their application to financial
services.
Background
The case involved the sale of Fijian bank notes by Travelex to a
traveller on the departures side of the Customs barrier at Sydney
International Airport. The evidence presented established that the
traveller was to use the currency outside Australia.
It was common ground by the parties that the supply of foreign
currency was a financial supply and therefore input taxed. The main
issue for consideration was whether the supply of foreign currency
by Travelex was GST-free under the export provisions. In either
case, the currency was not subject to GST.
