11.b. How is the value of the taxable supply calculated?
For source of ATO view, refer to principles in GSTR 2001/6External Link - Goods and services tax: non-monetary consideration.
Once it is established that there is a taxable supply, it is then necessary to determine the GST-inclusive market value of the consideration in order to calculate the GST payable. In the above examples, the consideration would be valued as follows:
- Appraisal or evaluation - the appraisal or evaluation amount.
- Advertising benefit - the amount you would have to pay to receive identical advertising.
GST payable by the dealer is 1/11th of the market value (including GST) of the consideration received as consideration for the market value of the supply of the vehicle.
GST payable by the recipient of the vehicle is 1/11th of the market value (including GST) of the use/supply of the vehicle received as consideration for the supply of the advertising.