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  


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 84 - Offshore supplies  

Subdivision 84-A - Offshore supplies that are taxable supplies, and " reverse charged " , under this Subdivision  

84-13   The amount of input tax credits relating to offshore supplies  


The amount of the input tax credit for a * creditable acquisition that relates to a supply that is a * taxable supply because of section 84-5 is as follows:

Full input tax
×     Extent of
creditable purpose
× Extent of


extent of consideration

(a) if the *recipient is the supplier ' s *associate and the supply is without *consideration - 100%; or

(b) in any other case - the extent to which you provide, or are liable to provide, the consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

extent of creditable purpose
is the extent to which the *creditable acquisition is for a * creditable purpose , expressed as a percentage of the total purpose of the acquisition.

full input tax credit
is 11/10 of what would have been the amount of the input tax credit for the acquisition if:

(a) the supply had been or is a * taxable supply otherwise than because of section 84-5 ; and

(b) the acquisition had been made solely for a creditable purpose; and

(c) you had provided, or had been liable to provide, all of the consideration for the acquisition.


However, if:

(a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and

(b) the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b) ;

the amount of the input tax credit on the acquisition is worked out under section 131-40 as if full input tax credit had the same meaning in subsection 131-40(2) as it has in subsection (1) of this section.


This section has effect despite:

(a) sections 11-25 and 11-30 (which are about the amount of input tax credits for creditable acquisitions); and

(b) section 72-45 (which is about the amount of input tax credits on an acquisition from an associate without consideration).

This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.