ATO Interpretative Decision
ATO ID 2002/872
Goods and Services Tax
LCT and luxury car tax valueFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Does the entity, a car dealer, include goods and services tax (GST) in the 'luxury car tax value' when calculating luxury car tax (LCT) using the formula in subsection 5-15(1) of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act)?
Decision
Yes, the entity does include GST in the 'luxury car tax value' when calculating LCT using the formula in subsection 5-15(1) of the LCT Act.
Facts
The entity is a car dealer. The entity sells a luxury car. The sale is a taxable supply of a luxury car under section 5-10 of the LCT Act. The entity is registered for GST.
Reasons for Decision
The formula in subsection 5-15(1) of the LCT Act for calculating LCT is:
25/100 * 10/11 * [luxury car tax value - luxury car tax threshold]
Section 5-20 of the LCT Act defines the 'luxury car tax value' of a car. Subsection 5-20(1) of the LCT Act provides that the luxury car tax value is the price of the car excluding:
- (a)
- any LCT for that supply; and
- (b)
- any other Australian tax, fee or charge, other than GST and customs duty payable on the supply of the car.
'Price' is defined in section 27-1 of the LCT Act as having the same meaning given in section 9-75 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Section 9-75 of the GST Act defines price as the amount of consideration received for the supply including the GST payable on the supply.
Although there are some taxes, fees and charges that are excluded from the price by subsection 5-20(1)(b) of the LCT Act, GST is not one of them.
Therefore, the entity does include GST in the 'luxury car tax value' when calculating LCT using the formula in subsection 5-15(1) of the LCT Act.
Date of decision: 23 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-75
section 5-10
subsection 5-15(1)
section 5-20
subsection 5-20(1)
paragraph 5-20(1)(b)
section 27-1 Related ATO Interpretative Decisions
ATO ID 2002/869
ATO ID 2002/870
ATO ID 2002/871
Other References:
Guide to Luxury Car Tax - NAT 3394
Luxury Car Tax Fact Sheet - NAT 2963
Keywords
Goods & services tax
GST Luxury Car Tax Stream
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 23 August 2001 | Original statement |
| 4 November 2005 | Archived |