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ATO Interpretative Decision

ATO ID 2002/515 (Withdrawn)

Goods and Services Tax

GST and an Australian agent's entitlement to input tax credits for an acquisition made by a non-resident entity
FOI status: may be released
  • Withdrawn. Information on this issue is found in GSTA TPP 036 - Goods and services tax: Who is liable for GST if a principal makes a taxable supply through an agent?
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 resident agent acting for a non-resident, entitled to input tax credits under section 57-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when a non-resident makes a creditable acquisition through the entity?

Decision

Yes, the entity is entitled to input tax credits under section 57-10 of the GST Act when a non-resident makes an acquisition in Australia through the entity.

Facts

The entity is a resident agent. A non-resident makes a creditable acquisition, as defined in section 11-5 of the GST Act, through the entity.

The entity is registered for goods and services tax (GST). The non-resident is also registered for GST.

Reasons for Decision

Under section 57-10 of the GST Act, if a non-resident makes a creditable acquisition or creditable importation through a resident agent:

•
the agent is entitled to the input tax credit on the acquisition or importation; and
•
the non-resident is not entitled to the input tax credit on the acquisition or importation.

Under section 57-20 of the GST Act, a resident agent who is acting as agent for a non-resident is required to be registered for GST if the non-resident is registered or required to be registered for GST.

The non-resident makes a creditable acquisition in Australia through the entity, a resident agent. In addition, both the entity and the non-resident are registered for GST. Therefore, under section 57-10 of the GST Act, the resident agent is the entity that is entitled to the input credit on the acquisition, not the non-resident.

[Note 1: A resident agent is required to hold a valid tax invoice for a creditable acquisition that a non-resident entity makes through it. The tax invoice meets the requirement to show the recipient's name and address or Australian Business Number (ABN) if it shows either:

•
the non-resident's name and address or ABN; or
•
the resident agent's name and address or ABN.
Note 2: When a non-resident makes a creditable acquisition in Australia that is not through a resident agent, the non-resident is entitled to the input tax credits itself. The non-resident is required to hold a valid tax invoice for these creditable acquisitions.]

Date of decision:  8 March 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 11-5
   section 57-10
   section 57-20

Keywords
Goods & services tax
GST international services
GST resident agents
Representative of the recipient/non-resident
GST supplies & acquisitions
Creditable acquisition

Business Line:  GST

Date of publication:  31 May 2002

ISSN: 1445-2782

history
  Date: Version:
  8 March 2001 Original statement
You are here 2 December 2005 Archived

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