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-C - Offshore supplies of low value goods  

84-83   Exception - when supplier reasonably believes there will be a taxable importation  

This section does not apply to a supply to the extent it is *connected with the indirect tax zone because of a provision of this Act other than this Subdivision.

An *offshore supply of low value goods is not connected with the indirect tax zone to the extent that:

(a) the supplier takes reasonable steps to obtain information about whether or not the goods would be imported into the indirect tax zone as a *taxable importation; and

(b) after taking those steps, the supplier reasonably believed that the goods would be imported into the indirect tax zone as a taxable importation.

Without limiting subsection (2), paragraph (2)(a) is taken to be satisfied if the supplier ' s usual business systems and processes provide the supplier with a reasonable basis for forming a reasonable belief about whether or not goods to be imported into the indirect tax zone would be imported as a *taxable importation.

For the purposes of paragraph (2)(b), the time at which the supplier must have the reasonable belief is:

(a) if subsection 84-81(4) (about redeliverers treated as suppliers) does not apply - at the most recent time before export that the *consideration for the supply was agreed; or

(b) if subsection 84-81(4) applies - at the time of delivering the goods into the indirect tax zone, or procuring, arranging or facilitating the delivery of the goods into the indirect tax zone.

This section has effect despite section 84-75 .

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