Mining and Energy Industry Partnership - issues register

1. GST joint venture

If a joint venture is a GST joint venture under Division 51 then sections 51-30 and 51-35 of the GST Act apply. These sections provide for a number of consequences that follow from the formation of a GST joint venture.

The first is that the joint venture operator is liable for the GST payable on taxable supplies it makes on behalf of a participant in the course of joint venture activities.

Secondly, a supply made from the joint venture operator to a participant is not a taxable supply if the participant acquired the thing supplied in the course of activities for which the joint venture was entered into.

Finally, the joint venture operator is entitled to the input tax credit for creditable acquisitions it makes on behalf of a participant in the course of the activities of the joint venture.

Sections within Chapter 4. Agency/principal issues and joint ventures

• Background
• 1. GST joint venture
• 2. No GST joint venture