ATO Interpretative Decision
ATO ID 2002/662 (Withdrawn)
Goods and Services Tax
GST and registration (when only input taxed supplies are made)FOI 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.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 business operator, required to register for goods and services tax (GST) under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the only supplies the entity makes are input taxed supplies?
Decision
No, the entity is not required to register for GST under section 23-5 of the GST Act when the only supplies that the entity makes are input taxed supplies.
Facts
The entity is a business operator. The entity is not a non-profit body. The only supplies that the entity makes are input taxed supplies. The entity's annual gross receipts from these supplies exceed $50,000.
Reasons for Decision
Section 23-5 of the GST Act provides that an entity is required to be registered for GST if:
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- it is carrying on an enterprise; and
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- its annual turnover meets the registration turnover threshold.
The entity is a business operator and is therefore carrying on an enterprise. Accordingly, under Division 23 of the GST Act, the entity is required to be registered for GST if its annual turnover threshold meets the registration turnover threshold.
Under section 23-15 of the GST Act, an entity's registration turnover threshold is $50,000, unless it is a non-profit body. The entity is not a non-profit body.
Subsection 188-10(1) of the GST Act defines turnover threshold in terms of current annual turnover or projected annual turnover. 'Turnover threshold', under section 195-1 of the GST Act, includes registration turnover threshold.
However, supplies that are input taxed are excluded from the calculation of current and projected annual turnover (paragraphs 188-15(1)(a) and 188-20(1)(a) of the GST Act).
Since all of the entity's supplies are input taxed supplies, the receipts from these supplies are excluded from the calculation of the entity's current and projected annual turnover. The entity's annual turnover will not meet the registration turnover threshold of $50,000.
Therefore, the entity is not required to register for GST under section 23-5 of the GST Act when the only supplies that it makes are input taxed.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
Division 23
section 23-5
subsection 23-10(1)
section 23-15
subsection 188-10(1)
paragraph 188-15(1)(a)
paragraph 188-20(1)(a)
section 195-1
Keywords
Goods and services tax
GST registration
GST annual turnover
GST turnover threshold
Required to be registered
Input taxed supplies
ISSN: 1445-2782
| Date: | Version: | |
| 12 November 2001 | Original statement | |
| You are here | 16 September 2005 | Archived |
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