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Edited version of private ruling

Authorisation Number: 1011531537877

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Subject: GST and downloaded software

The ruling concerned the following:

1. Does an Australian company (AusCo) need to include any amount on its Business activity statements (BAS) for GST purposes in relation to a person purchasing X over the internet, for use in downloading computer software as noted in question (4)?

2. Does AusCo need to include any amount on its BAS for GST purposes in relation to a person purchasing a particular item that enables the holder to acquire X for use in downloading computer software as noted in question (4)?

3. Does AusCo need to include any amount on its BAS for GST purposes in relation to a person acquiring X via (redemption of) a particular item?

4. Does AusCo need to include any amount on its BAS for GST purposes in relation to a person downloading computer software from an internet server located outside Australia?

5. Does AusCo need to include any amount on its BAS for GST purposes in relation to any aspect of the activities which are outlined in the private ruling request (and if so AusCo requests identification of the relevant aspect)?

The commissioner ruled that:

1. Yes. The supply of X and the software is a single composite supply of the (use of) downloaded software. AusCo is required to include an amount(s) on its BAS for the supply of the X used in downloading software.

2. Yes. AusCo is required to include an amount(s) on its BAS for the supply of a particular item that enables the holder to acquire X online used in downloading software, when AusCo is the supplier of the particular items to the resellers.

3. No. AusCo is not required to include an amount(s) on its BAS in relation to a person acquiring X online on redemption of a particular item, as there is no additional consideration.

4. AusCo is required to include an amount(s) on its BAS in relation to the supply of the downloaded software when a person acquires X online as per question (1) above.

5. Not applicable as the activities outlined in the private ruling request have been answered in questions (1) to (4).

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