Indirect Tax Legislation Amendment Act 2000 (92 of 2000)

Schedule 3   Supplies involving non-residents

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

12   After section 81-10

Insert:

Division 83 - Non-residents making supplies connected with Australia

83-1 What this Division is about

The GST on taxable supplies made by non-residents can, with the agreement of the recipients, be "reverse charged" to the recipients.

83-5 "Reverse charge" on supplies made by non-residents

(1) The GST on a *taxable supply is payable by the *recipient of the supply, and is not payable by the supplier, if:

(a) the supplier is a *non-resident; and

(b) the supplier does not make the supply through an *enterprise that the supplier *carries on in Australia; and

(c) the recipient is *registered or *required to be registered; and

(d) the supplier and the recipient agree that the GST on the supply be payable by the recipient.

(2) However, this section does not apply to:

(a) a supply that is not *connected with Australia but that is a *taxable supply because of Division 84 (which is about offshore supplies other than goods or real property); or

(b) a taxable supply made by a *non-resident through a *resident agent.

Note: GST on these taxable supplies is payable by the resident agent: see section 57-5.

(3) This section has effect despite section 9-40 (which is about liability for the GST).

83-10 Recipients who are members of GST groups

(1) If section 83-5 applies to a *taxable supply but the *recipient of the supply is a *member of a *GST group, the GST on the supply:

(a) is payable by the *representative member; and

(b) is not payable by the member (unless the member is the representative member).

(2) This section has effect despite section 83-5.

83-15 Recipients who are participants in GST joint ventures

(1) If section 83-5 applies to a *taxable supply but the *recipient of the supply is a *participant in a *GST joint venture and the supply is made, on the recipient's behalf, by the *joint venture operator of the GST joint venture in the course of activities for which the joint venture was entered into, the GST on the supply:

(a) is payable by the joint venture operator; and

(b) is not payable by the participant.

(2) This section has effect despite section 83-5.

83-20 The amount of GST on "reverse charged" supplies made by non-residents

(1) The amount of GST on a supply to which section 83-5, 83-10 or 83-15 applies is 10% of the *price of the supply.

(2) This section has effect despite section 9-70 (which is about the amount of GST on taxable supplies).

83-25 When non-residents must apply for registration

(1) A *non-resident need not apply to be *registered under this Act if the non-resident's *annual turnover would not meet the *registration turnover threshold but for the *taxable supplies of the non-resident that are taxable supplies to which section 83-5 applies.

(2) It does not matter whether the *non-resident is *required to be registered.

(3) This section has effect despite section 25-1 (which is about when entities must apply for registration).

83-30 When the Commissioner must register non-residents

(1) The Commissioner need not *register a *non-resident if the Commissioner is satisfied that the non-resident's *annual turnover would not meet the *registration turnover threshold but for the *taxable supplies of the non-resident that are taxable supplies to which section 83-5 applies.

(2) It does not matter whether the *non-resident is *required to be registered.

(3) This section has effect despite section 25-5 (which is about when the Commissioner must register an entity).

83-35 Tax invoices not required for "reverse charged" supplies made by non-residents

(1) A *non-resident is not required to issue a *tax invoice for a *taxable supply of the non-resident that is a taxable supply to which section 83-5 applies.

(2) Subsection (1) has effect despite section 29-70 (which is about the requirement to issue tax invoices).

(3) Subsection 29-10(3) does not apply in relation to a *creditable acquisition made by an entity as a result of being the *recipient of a *taxable supply to which section 83-5 applies.