ATO Interpretative Decision

ATO ID 2001/513 (Withdrawn)

Goods and Services Tax

GST and coin-operated devices
FOI status: may be released

This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, the operator of a car wash business, making an input taxed supply under subsection 24C(1) of the A New Tax System (Goods and Services Transition) Act 1999 (Transition Act), when it supplies the coin-operated car wash facilities?

Decision

No, the entity is not making an input taxed supply under subsection 24C(1) of the Transition Act when it supplies coin-operated car wash facilities. The entity is making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Facts

The entity is the operator of a car wash business. The entity provides car wash facilities by way of coin-operated devices. The coin-operated car wash facilities accept more than one denomination of coin.

The entity is registered for goods and services tax (GST). The supply meets the other positive limbs of section 9-5 of the GST Act.

Reasons for Decision

Under subsection 24C(1) of the Transition Act, a supply of tangible personal property or a service from a mechanical coin-operated device is input taxed if:

(a): the maximum consideration for the supply is $1 and is paid by depositing up to 2 coins in the device; and
(b): the device accepts only one denomination of coin and does not give change; and
(c): the device was operating on 1 July 2000; and
(d): the supply is made before 1 July 2005; and
(e): the supply is not a gambling supply; and
(f): you choose to have all of your supplies made from the device on or after 1 July 2000 treated as input taxed.

In this case, the coin-operated car wash facilities accept more than one denomination of coin. As such, the requirements under paragraph 24C(1)(b) of the Transition Act are not satisfied. Therefore, the entity is not making an input taxed supply under the subsection 24C(1) of the Transition Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act.

Date of decision: 06 September 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   Division 40

A New Tax System (Goods and Services Transition) Act 1999
subsection 24C(1)
paragraph 24C(1)(b)

Keywords
Goods and services tax
Taxable supply
Input taxed supplies

Business Line: GST

Date of publication: 22 October 2001

ISSN: 1445-2782

history

	Date:	Version:
	6 September 2001	Original statement
You are here	23 December 2005	Archived

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