EV 1052367902285currentnon-binding advice

GST supplies and acquisitions

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Is the Entity 1 making a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it receives a payment from Entity 2 under the mechanism?

2

1 Yes. The Entity 1 is making a taxable supply when it receives payment from Entity 2 under the mechanism. Question 2 Is the Entity 1 making a creditable acquisition pursuant to section 11-5 of the GST Act when it makes a payment under the mechanism? Answer 2 Yes. The Entity 1 is making a creditable acquisition when it makes a payment under the mechanism where Entity 2 is registered or required to be registered for GST.

3

You make payments and receive payments under a mechanism.

4

A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 subsection 9-10(1) A New Tax System (Goods and Services Tax) Act 1999 section 11-5 A New Tax System (Goods and Services Tax) Act 1999 section 11-20