ATO Interpretative Decision
ATO ID 2001/354 (Withdrawn)
Goods and Services Tax
GST and the supply of goods on or after 1 July 2000FOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, a supplier of goods, making a supply on or after 1 July 2000 as determined by subsection 6(2) of the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act), when it makes goods available to a recipient on or after 1 July 2000, for which consideration is received prior to 1 July 2000?
Decision
Yes, the entity is making a supply of goods on or after 1 July 2000 as determined by subsection 6(2) of the Transition Act, when it makes goods available to a recipient on or after 1 July 2000, for which consideration is received prior to 1 July 2000.
Facts
The entity is a supplier of goods. The entity receives consideration for the sale of the goods prior to 1 July 2000. The entity does not make the goods available to the recipient until on or after 1 July 2000.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Section 6 of the Transition Act sets out how to determine when a supply or acquisition is made for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Subsection 6(2) of the Transition Act states that a supply or acquisition of goods is made:
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- when the goods are removed;
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- if the goods are not to be removed - when the goods are made available to the recipient; or
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- if the goods are removed before it is certain that a supply will be made (for example, if the goods are given or taken on approval, sale or return, or similar terms) - when it becomes certain that a supply has been made.
The entity receives full consideration, prior to 1 July 2000, for goods that are not made available to the recipient until on or after 1 July 2000. The supply of the goods is deemed to be when the goods are made available to the recipient, which in this case, is on or after 1 July 2000. As such, as determined by subsection 6(2) of the Transition Act, the entity is making a supply of goods on or after 1 July 2000.
Legislative References:
A New Tax System (Goods and Services Tax Transition) Act 1999
section 6
subsection 6(2)
section 9-5
Division 38
Division 40
Other References:
'GST Transitional Arrangements - How the transitional rules could apply' (NAT 2912).
Keywords
Goods and services tax
GST supplies & acquisitions
GST transitional issues
Time of supply/acquisition
ISSN: 1445-2782
| Date: | Version: | |
| 14 June 2001 | Original statement | |
| You are here | 2 September 2005 | Archived |