A New Tax System (Goods and Services Tax Transition) Act 1999

Part 5 - Special transitional rules  

19A   Sales of motor vehicles held under operating leases since 2 December 1998  

If, in relation to a supply of a motor vehicle, all of the following conditions are met, the supplier of the vehicle is entitled to a special credit equal to 1/11 of the price of the supply:

(a) the supply is the first sale of the motor vehicle to take place on or after 1 July 2000;

(b) the supplier was, immediately before the sale, the lessor of the motor vehicle under an operating lease;

(c) the supplier bought the motor vehicle before 2 December 1998 for the purpose of leasing it under an operating lease;

(d) the motor vehicle has been the subject of sales tax.

The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice.

In this section:

operating lease
means a lease under which the lessor effectively retains substantially all risks and benefits incidental to the ownership of the motor vehicle.

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