• Reverse charge in the precious metals industry

    From 1 April 2017, a reverse charge of goods and services tax (GST) applies to all business-to-business taxable supplies of gold, silver or platinum.

    Under this change to the law, if you are a buyer or seller in the precious metals industry undertaking business-to business-transactions and you are registered for GST, you are required to apply a reverse charge on taxable supplies of gold, silver or platinum.

    This change makes the recipient responsible for remitting GST, rather than the supplier. It makes it easier and faster for businesses in the precious metal industry to meet their GST and reporting obligations.

    Note: The reverse charge is not applicable when you are buying and selling to members of the public (individual – non-business entities). In these situations, the normal GST rules apply.

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    • Legislation and supporting material is in GST and precious metals Draft Goods and Services Tax Determination
      • GSTD 2017/D1 Goods and services tax: what is excluded from being second-hand goods by paragraph (b) of the definition of that term in Division 195 of the A New Tax System (Goods and Services Tax) Act 1999?
       
      Last modified: 01 May 2017QC 50847