Chapter 2
-
The basic rules
Part 2-2
-
Supplies and acquisitions
Division 9
-
Taxable supplies
Subdivision 9-A
-
What are taxable supplies?
9-25
Supplies connected with the indirect tax zone
Supplies of goods wholly within the indirect tax zone
(1)
A supply of goods is
connected with the indirect tax zone
if the goods are delivered, or made available, in the indirect tax zone to the *
recipient
of the supply.
History
S 9-25(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
in the heading,
"
the indirect tax zone
"
for
"
Australia
"
and
"
the indirect tax zone
"
for
"
Australia
"
, applicable to a tax period that commences on or after 1 July 2015.
Supplies of goods from the indirect tax zone
(2)
A supply of goods that involves the goods being removed from the indirect tax zone is
connected with the indirect tax zone
.
History
S 9-25(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
in the heading,
"
the indirect tax zone
"
for
"
Australia
"
and
"
the indirect tax zone
"
for
"
Australia
"
, applicable to a tax period that commences on or after 1 July 2015.
Supplies of goods to the indirect tax zone
(3)
A supply of goods that involves the goods being brought to the indirect tax zone is
connected with the indirect tax zone
if the supplier imports the goods into the indirect tax zone.
History
S 9-25(3) amended by No 52 of 2016, s 3 and Sch 2 item 1, by substituting
"
imports the goods into the indirect tax zone.
"
for all the words after
"
the supplier
"
, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s
9-26
. All the words after
"
the supplier
"
formerly read:
either:
(a)
imports the goods into the indirect tax zone; or
(b)
installs or assembles the goods in the indirect tax zone.
S 9-25(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
in the heading,
"
the indirect tax zone
"
for
"
Australia
"
(wherever occurring) and
"
the indirect tax zone
"
for
"
Australia
"
, applicable to a tax period that commences on or after 1 July 2015.
(3A)
A supply of goods that is an *offshore supply of low value goods is
connected with the indirect tax zone
if it is connected with the indirect tax zone under Subdivision
84-C
.
History
S 9-25(3A) inserted by No 77 of 2017, s 3 and Sch 1 item 1, effective 1 July 2017. For application provisions, see note under Div
146
heading.
Supplies of real property
(4)
A supply of *
real property
is
connected with the indirect tax zone
if the real property, or the land to which the real property relates, is in the indirect tax zone.
History
S 9-25(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
and
"
the indirect tax zone
"
for
"
Australia
"
, applicable to a tax period that commences on or after 1 July 2015.
S 9-25(4) amended by No 176 of 1999, s 3 and Sch 1 item 6, by inserting
"
, or the land to which the real property relates,
"
, effective 1 July 2000.
Supplies of anything else
(5)
A supply of anything other than goods or *
real property
is
connected with the indirect tax zone
if:
(a)
the thing is done in the indirect tax zone; or
(b)
the supplier makes the supply through an *
enterprise
that the supplier *
carries on in the indirect tax zone
; or
(c)
all of the following apply:
(i)
neither paragraph (a) nor (b) applies in respect of the thing;
(ii)
the thing is a right or option to acquire another thing;
(iii)
the supply of the other thing would be connected with the indirect tax zone; or
(d)
the *recipient of the supply is an *Australian consumer.
Example:
A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).
Note:
A supply that is connected with the indirect tax zone under this subsection might be GST-free if it is consumed outside the indirect tax zone: see section
38-190
. For more rules about supplies that are GST-free, see Division
38
.
History
S 9-25(5) amended by No 52 of 2016, s 3 and Sch 1 items 1 and 2, by inserting para (d) and the note, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv
38-T
heading.
S 9-25(5) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
,
"
the indirect tax zone
"
for
"
Australia
"
(wherever occurring) in para (a), (b) and (c), and
"
for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).
"
for
"
for Australia that is supplied overseas might be connected with Australia under paragraph (5)(c).
"
in the example, applicable to a tax period that commences on or after 1 July 2015.
S 9-25(5) amended by No 77 of 2005, s 3 and Sch 3 items 1 and 2, by omitting
"
either
"
after
"
with Australia if
"
and inserting para (c), applicable to supplies made on or after 1 October 2005.
Supplies of goods involving installation or assembly services
(6)
If a supply of goods (other than a *luxury car) (the
actual supply
) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:
(a)
the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;
(b)
the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.
Note 1:
The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section
9-26
applies.
Note 2:
The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division
13
.
Note 3:
For the
price
of the separate supplies, see subsection
9-75(4)
.
History
S 9-25(6) substituted by No 52 of 2016, s 3 and Sch 2 item 2, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s
9-26
. S 9-25(6) formerly read:
When enterprises are carried on in the indirect tax zone
(6)
An *enterprise is
carried on in the indirect tax zone
if the enterprise is carried on through:
(a)
a permanent establishment (as defined in subsection 6(1) of the
Income Tax Assessment Act 1936
) in the indirect tax zone; or
(b)
a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.
S 9-25(6) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting
"
the indirect tax zone
"
for
"
Australia
"
in the heading,
"
the indirect tax zone
"
for
"
Australia
"
and
"
1936
) in the indirect tax zone
"
for
"
1936
)
"
in para (a), applicable to a tax period that commences on or after 1 July 2015.
Meaning of
Australian consumer
(7)
An entity is an
Australian consumer
of a supply made to the entity if:
(a)
the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of
Australia
in the *ITAA 1997 includes the external Territories); and
(b)
the entity:
(i)
is not *registered; or
(ii)
if the entity is registered
-
the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.
Note:
Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section
84-100
.
History
S 9-25(7) inserted by No 52 of 2016, s 3 and Sch 1 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv
38-T
heading.
View history note
Hide history note