ATO Interpretative Decision

ATO ID 2001/627 (Withdrawn)

Goods and Services Tax

GST and supply of goods and services to an entity that is not registered for GST
FOI status: may be released

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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplier of goods and services that is registered for goods and services tax (GST), making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it makes a supply to a recipient that is not registered for GST?

Decision

Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it makes a supply to a recipient that is not registered for GST.

Facts

The entity is a supplier of goods and services. The entity makes a supply to a recipient that is not registered for GST. The supplies are neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act.

The entity is registered for GST. The supply is for consideration. The supply is made in the course of the entity's enterprise and the supply is connected with Australia.

The recipient is not registered for GST.

Reasons for Decision

Under section 9-5 of the GST Act a supply is taxable if:

•: the supply is for consideration;
•: the supply is made in the course or furtherance of an enterprise;
•: the supply is connected with Australia; and
•: the entity is registered or required to be registered for GST.

The entity is making a supply for consideration, the supply is made in the course of the entity's enterprise, and the supply is connected with Australia. Additionally, the entity is registered for GST. 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 when it makes a supply to an entity that is not registered for GST.

[Note: In determining whether the entity is making a taxable supply under section 9-5 of the GST Act, the GST registration status of the recipient of the supply is not relevant.]

Date of decision: 1 November 2001

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

Keywords
Goods and services tax
GST supplies & acquisitions
Taxable supply

Business Line: GST

Date of publication: 29 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	1 November 2001	Original statement
You are here	13 September 2005	Archived

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