ATO Interpretative Decision
ATO ID 2002/992 (Withdrawn)
Goods and Services Tax
GST and postponement of attribution of an input tax creditFOI 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.
Status of this decision: Decision Withdrawn 30 September 2005
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Can the entity, a business operator, attribute an input tax credit for a creditable acquisition to a tax period that is later than the tax period in which the entity first held a tax invoice for that acquisition, under section 29-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Decision
Yes, the entity can attribute an input tax credit for a creditable acquisition to a tax period that is later than the tax period in which the entity first held a tax invoice for that acquisition, under section 29-10 of the GST Act.
Facts
The entity is a business operator that is registered for goods and services tax (GST) and accounts for GST on a cash basis.
The entity made a creditable acquisition and provided all of the consideration for the acquisition in the one tax period. The entity did not receive the tax invoice for the acquisition until the next tax period.
The entity's GST return for the tax period in which the tax invoice was received did not take into account the input tax credit for that creditable acquisition.
Reasons for Decision
Section 29-10 of the GST Act sets out the requirements for the attribution of input tax credits for creditable acquisitions.
If an entity accounts for GST on a cash basis and provides all of the consideration for a creditable acquisition in the one tax period, the input tax credit for that acquisition is attributable to that particular tax period (paragraph 29-10(2)(a) of the GST Act).
The entity made a creditable acquisition and provided all of the consideration for that acquisition in the one tax period. As the entity accounts for GST on a cash basis, the input tax credit for that acquisition is attributable to that particular tax period.
However, the entity did not receive the tax invoice for the acquisition until the next tax period, which was after all of the consideration for the acquisition was provided.
Paragraph 29-10(3)(a) of the GST Act provides that if an entity does not hold a tax invoice for a creditable acquisition when it submits its GST return (Business Activity Statement) for the tax period to which the input tax credit on the acquisition would otherwise be attributable, the input tax credit is not attributable to that particular tax period. Rather, the input tax credit is attributable to the first tax period for which a GST return is lodged at a time when the entity does hold the tax invoice for that acquisition (paragraph 29-10(3)(b) of the GST Act).
Therefore, it would appear that the input tax credit for this acquisition is attributable to the tax period in which the tax invoice is received.
However, when the entity received the tax invoice for the creditable acquisition, it did not take into account the input tax credit for this acquisition when lodging its GST return for that tax period.
Paragraph 29-10(4)(a) of the GST Act provides that where an entity lodges a GST return for a tax period referred to in paragraph 29-10(3)(b) of the GST Act and it does not take into account an input tax credit that is attributable to that tax period, the input tax credit is not attributable to that tax period. Rather, the input tax credit is now attributable to the first tax period for which the entity lodges a GST return that does take the input tax credit into account (paragraph 29-10(4)(b) of the GST Act).
The entity did not take into account the input tax credit on the creditable acquisition when lodging a GST return for the tax period in which the tax invoice was first held. Due to the operation of subsection 29-10(4) of the GST Act, the entity can attribute the input tax credit to a tax period that is later than the tax period in which the entity first held a tax invoice for that acquisition.
Date of decision: 17 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 29-10
paragraph 29-10(2)(a)
paragraph 29-10(3)(a)
paragraph 29-10(3)(b)
subsection 29-10(4)
paragraph 29-10(4)(a)
paragraph 29-10(4)(b)
Keywords
Goods & services tax
GST tax periods
Attribution rules
ISSN: 1445-2782
| Date: | Version: | |
| 17 August 2001 | Original statement | |
| You are here → | 30 September 2005 | Archived |