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  • Joint venture net amounts

    Non-interpretative - straight application of the law.

    What is a net amount?

    The net amount relating to a joint venture is the sum of all the GST for which the joint venture is liable, less the sum of all the input tax credits to which the joint venture is entitled, for that particular tax period.

    One GST joint venture return

    One GST return will contain the net amount of all the joint venture participants' activities, including the operator's joint venture activities if the operator is also a participant in the joint venture.

    If the joint venture operator is not a participant in the joint venture, then the GST joint venture return would not include the joint venture operator's net amount. The joint venture return would only include the net amount relating to the participants' activities in the joint venture (section 51-45 of the GST Act).

    Additional net amounts

    Section 51-50 of the GST Act requires the joint venture operator, on behalf of the joint venture, to submit a GST return to the ATO each tax period. The GST return must state the net amount relating to the joint venture (subsection 51-50(2) of the GST Act).

    Therefore, if the joint venture operator is also a participant of the joint venture, then the net amount of the joint venture would include the net amount of the operator's joint venture activities (sections 17-5 and 51-50 of the GST Act) as well as the additional net amounts of the other participants (section 51-45 of the GST Act).

    Attention

    Note:

    The joint venture operator and the other participants will also submit their own GST returns in relation to their activities outside the joint venture (section 31-5 of the GST Act).

    End of attention
      Last modified: 01 Sep 2015QC 16450