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Edited version of private advice
Authorisation Number: 1052367902285
Date of advice: 15 April 2025
Ruling
Subject: GST supplies and acquisitions
Question 1
Is the Entity 1 making a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it receives a payment from Entity 2 under the mechanism?
Answer 1
Yes. The Entity 1 is making a taxable supply when it receives payment from Entity 2 under the mechanism.
Question 2
Is the Entity 1 making a creditable acquisition pursuant to section 11-5 of the GST Act when it makes a payment under the mechanism?
Answer 2
Yes. The Entity 1 is making a creditable acquisition when it makes a payment under the mechanism where Entity 2 is registered or required to be registered for GST.
Relevant facts and circumstances
You make payments and receive payments under a mechanism.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 9-10(1)
A New Tax System (Goods and Services Tax) Act 1999 section 11-5
A New Tax System (Goods and Services Tax) Act 1999 section 11-20
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