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.
A * taxable supply that the principal makes to a third party through the intermediary is taken to be a supply that is a taxable supply made by the intermediary to the third party, and not by the principal, if:
(a) the supply is of a kind to which the arrangement applies; and
(b) the supply is made in accordance with the arrangement; and
(c) both the principal and the intermediary are * registered .
In addition, the principal is taken to make a supply that is a * taxable supply to the intermediary. This supply is taken:
(a) to be a supply of the same thing as is supplied in the taxable supply (the intermediary ' s supply ) that the intermediary is taken to make; and
(b) to have a * value equal to 10/11 of the amount that is payable to the principal by the intermediary in respect of the intermediary ' s supply.
The intermediary is taken to make a corresponding * creditable acquisition from the principal.
If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the intermediary for the intermediary ' s supply to the third party:
(a) for the purpose of paragraph (2)(b), the amount payable by the intermediary to the principal is taken to be reduced by the amount the principal pays, or is liable to pay, to the intermediary; and
(b) the supply by the intermediary to the principal, to which the principal ' s payment or liability relates, is not a * taxable supply .
However, this section no longer applies, and is taken never to have applied, if the principal issues to the third party, in the principal ' s own name, any * tax invoice or * adjustment note relating to the supply. (4A)
Without limiting subsection (4), this section does not apply in relation to a supply to which section 84-55 or section 84-81 applies.
These sections treat an operator of an electronic distribution platform, or a goods redeliverer, as having made the supply.
This section has effect despite section 9-5 (which is about what are taxable supplies), section 9-75 (which is about the value of taxable supplies) and section 11-5 (which is about what are creditable acquisitions).
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