A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 86 - Valuable metals  

86-5   " Reverse charge " on supplies of goods consisting of valuable metal  

(1)  
The GST on a *taxable supply of goods is payable by the *recipient of the supply, and is not payable by the supplier, if:


(a) the goods consist wholly or partly of *valuable metal; and


(b) the recipient is *registered or *required to be registered; and


(c) either:


(i) at the time of the supply, the market value of the goods does not exceed the *valuable metal threshold; or

(ii) the supplier and the recipient agree, in writing, that the GST on the supply be payable by the recipient.

(2)  
Subsection (1) does not apply to a *taxable supply of goods if the supply is in a class of supplies determined under subsection (3). Determination

(3)  
For the purposes of subsection (2), the Commissioner may, by legislative instrument, determine that subsection (1) does not apply to a specified class of supplies.

(4)  
In making a determination under subsection (3), the Commissioner may have regard to the following:


(a) the likelihood that *recipients and suppliers of that class of supply will otherwise comply with their obligations under the *GST law, and the risk of GST not being paid on *taxable supplies in that class if recipients do not pay the GST;


(b) the costs for recipients and suppliers of that class of supplies to comply with subsection (1);


(c) any other relevant matters. Effect of this section on other sections

(5)  
This section has effect despite sections 9-40 (which is about liability for the GST), 48-40 , 51-30 and 83-5 (which are about who is liable for GST).




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