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  

84-5   Offshore supplies that are taxable supplies under this Subdivision  

(1)  


A supply is a taxable supply (except to the extent that it is *GST-free or *input taxed) if:


(a) the supply is for *consideration; and


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


(c) the supply is covered by the third column of this table.


Offshore supplies that are taxable supplies under this Subdivision
Item Topic These supplies are covered [mldr ]
1 Intangible supply - general a supply of anything other than goods or *real property if:
(a) the supply is not *connected with the indirect tax zone; and
(b) the *recipient of the supply satisfies the purpose test in subsection (1A).
2 Intangible supply - right or option a supply of anything other than goods or *real property if:
(a) the supply is *connected with the indirect tax zone because of paragraph 9-25(5)(c); and
(b) the *recipient of the supply satisfies the purpose test in subsection (1A).
3 Intangible supply - supplier believed recipient was not a consumer a supply of anything other than goods or *real property if:
(a) the supply is *connected with the indirect tax zone because of paragraph 9-25(5)(d); and
(b) under section 84-100 , the *GST law applies in relation to the supplier as if the *recipient was not an *Australian consumer of the supply; and
(c) the *ABN of the recipient, or the other identifying information prescribed under subsection 84-100(4) relating to the recipient, has been disclosed to the supplier; and
(d) the recipient has provided to the supplier a declaration or information that indicates that the recipient is *registered.
4 Low value goods - general an *offshore supply of low value goods if:
(a) the supply is not *connected with the indirect tax zone; and
(b) the *recipient of the supply satisfies the purpose test in subsection (1A); and
(c) the importation of the goods is not a *taxable importation on which the recipient is liable to pay GST.
5 Low value goods - supplier believed recipient was not a consumer an *offshore supply of low value goods if:
(a) the supply is *connected with the indirect tax zone solely because of Subdivision 84-C ; and
(b) under section 84-105 , the *GST law applies in relation to the supplier as if the *recipient was not a *consumer of the supply; and
(c) the importation of the goods is not a *taxable importation on which the recipient is liable to pay GST.

(1A)  


The purpose test referred to in items 1, 2 and 4 of the table in subsection (1) is that:


(a) the *recipient of the supply acquires the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and


(b) the recipient does not acquire the thing supplied solely for a *creditable purpose.

(1B)  


However, items 3 and 5 of the table in subsection (1) only cover a supply to the extent that it is *connected with the indirect tax zone solely because of:


(a) for item 3 - paragraph 9-25(5)(d); or


(b) for item 5 - Subdivision 84-C .

(1C)  
(Repealed by No 77 of 2017)

(2)  


For the purposes of this section, in determining whether the * recipient is * required to be registered , what would be the * value of such supplies (if they were * taxable supplies ) is to be counted towards the recipient ' s * GST turnover .

(3)  
This section has effect despite section 9-5 (which is about what is a taxable supply).




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