ATO Interpretative Decision
ATO ID 2002/671
Goods and Services Tax
GST and mechanical coin-operated devicesFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the entity, an owner of a mechanical coin-operated device, making an input taxed supply under subsection 24C(1) of the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act), when it supplies tangible personal property or a service from that device on or after 1 July 2000 but before 1 July 2005?
Decision
Yes, the entity is making an input taxed supply under subsection 24C(1) of the Transition Act when it supplies tangible personal property or a service from its mechanical coin-operated device on or after 1 July 2000 but before 1 July 2005.
Facts
The entity owns and operates a mechanical coin-operated device that supplies tangible personal property or a service. The maximum consideration for a supply from the device is $1.
The device accepts only one denomination of coins ($1 coins) and does not give any change.
The device was in operation as at 1 July 2000. The supplies from the device are not gambling supplies.
The entity chooses to have all of its supplies made from the device treated as input taxed. The entity is registered for goods and services tax (GST).
Reasons for Decision
Subsection 24C(1) of the Transition Act provides that a supply of tangible personal property or a service from a mechanical coin-operated device is input taxed if:
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- the maximum consideration for the supply is $1 and is paid by depositing up to 2 coins in the device; and
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- the device accepts only one denomination of coin and does not give change; and
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- the device was operating on 1 July 2000; and
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- the supply is made before 1 July 2005; and
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- the supply is not a gambling supply; and
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- the entity chooses to have all of its supplies made from the device on or after 1 July 2000 treated as input taxed.
The entity's mechanical coin-operated device satisfies all the requirements of subsection 24C(1) of the Transition Act. Therefore, the entity is making an input taxed supply under subsection 24C(1) of the Transition Act when it supplies tangible personal property or a service from its coin-operated device on or after 1 July 2000 but before 1 July 2005.
Legislative References:
A New Tax System (Goods and Services Tax Transition) Act 1999
subsection 24C(1)
Keywords
Goods and services tax
GST transitional issues
Special transitional rules
ISSN: 1445-2782
| Date: | Version: | |
| You are here → | 12 November 2001 | Original statement |
| 16 December 2005 | Archived |