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 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  

(1)    

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 credit

×

Extent of creditable purpose

×

Extent of consideration

where:

extent of consideration
is:

(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.

(1A)    

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.

(2)    

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).