A New Tax System (Goods and Services Tax) Act 1999
The special rules in this Part mainly modify the operation of Part 2-6 , but they may affect other Parts of Chapter 2 in minor ways.Division 153 - Agents etc. and insurance brokers
Act No 32 of 2006, s 3 and Sch 4 item 21 contained the following transitional provision, effective 6 April 2006.
This item applies if:
(a) a supplier of telecommunications supplies entered into an arrangement under section 153-50 of the A New Tax System (Goods and Services Tax) Act 1999 before 6 April 2006; and
(b) the arrangement applies wholly or partly to prepaid phone cards or facilities; and
(c) to the extent that the arrangement applies to those cards or facilities, section 153-55 of that Act did not apply to the supply of those cards or facilities merely because:
(i) the supply was not a taxable supply; or
(ii) the supply was not a taxable supply and another party to the arrangement was not an agent of the supplier of telecommunications supplies.
To the extent that the arrangement applies to supplies of prepaid phone cards or facilities made on or after 6 April 2006, the arrangement is taken to have effect under Subdivision 153-B of the A New Tax System (Goods and Services Tax) Act 1999 as if:
(a) those supplies were taxable supplies; and
(b) if subparagraph (1)(c)(ii) applies - that other party supplies those cards or facilities as the agent of the supplier of telecommunications supplies.
An entity (the principal ) may, in writing, enter into an arrangement with another entity (the intermediary ) under which:
(a) the intermediary will, on the principal ' s behalf, do any or all of the following:
(i) make supplies to third parties;
(ii) facilitate supplies to third parties (including by issuing * invoices relating to, or receiving * consideration for, such supplies);
(iii) make acquisitions from third parties;
(iv) facilitate acquisitions from third parties (including by providing consideration for such acquisitions); and
(b) the kinds of supplies or acquisitions, or the kinds of supplies and acquisitions, to which the arrangement applies are specified; and
(c) for the purposes of the GST law:
(i) the intermediary will be treated as making the supplies to the third parties, or acquisitions from the third parties, or both; and
(ii) the principal will be treated as making corresponding supplies to the intermediary, or corresponding acquisitions from the intermediary, or both; and
(d) in the case of supplies to third parties:
(i) the intermediary will issue to the third parties, in the intermediary ' s own name, all the * tax invoices and * adjustment notes relating to those supplies; and
(ii) the principal will not issue to the third parties any tax invoices and adjustment notes relating to those supplies; and
(e) the arrangement ceases to have effect if the principal or the intermediary, or both of them, cease to be * registered .
For the purposes of subsection (1), an entity can be an intermediary whether or not the entity is the agent of the principal.