A New Tax System (Goods and Services Tax) Act 1999
The special rules in this Part mainly modify the operation of Part 2-6 , but they may affect other Parts of Chapter 2 in minor ways.Division 153 - Agents etc. and insurance brokers
Act No 32 of 2006, s 3 and Sch 4 item 21 contained the following transitional provision, effective 6 April 2006.
This item applies if:
(a) a supplier of telecommunications supplies entered into an arrangement under section 153-50 of the A New Tax System (Goods and Services Tax) Act 1999 before 6 April 2006; and
(b) the arrangement applies wholly or partly to prepaid phone cards or facilities; and
(c) to the extent that the arrangement applies to those cards or facilities, section 153-55 of that Act did not apply to the supply of those cards or facilities merely because:
(i) the supply was not a taxable supply; or
(ii) the supply was not a taxable supply and another party to the arrangement was not an agent of the supplier of telecommunications supplies.
To the extent that the arrangement applies to supplies of prepaid phone cards or facilities made on or after 6 April 2006, the arrangement is taken to have effect under Subdivision 153-B of the A New Tax System (Goods and Services Tax) Act 1999 as if:
(a) those supplies were taxable supplies; and
(b) if subparagraph (1)(c)(ii) applies - that other party supplies those cards or facilities as the agent of the supplier of telecommunications supplies.
An acquisition that the principal makes from a third party through the intermediary is taken to be a * creditable acquisition made by the intermediary from the third party, and not by the principal, if:
(a) the acquisition is of a kind to which the arrangement applies; and
(b) the acquisition is made in accordance with the arrangement; and
(c) both the principal and the intermediary are * registered .
In addition, the intermediary is taken to make a supply that is a * taxable supply to the principal. This supply is taken:
(a) to be a supply of the same thing as is acquired in the * creditable acquisition (the intermediary ' s acquisition ) that the intermediary is taken to make; and
(b) to have a * value equal to 10/11 of the amount that is payable to the intermediary by the principal in respect of the intermediary ' s acquisition.
The principal is taken to make a corresponding acquisition from the intermediary, and the acquisition is taken to be a creditable acquisition if, apart from this section, the principal ' s acquisition from the third party would have been a creditable acquisition.
If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the intermediary for the intermediary ' s acquisition from the third party:
(a) for the purpose of paragraph (2)(b), the amount payable by the principal to the intermediary is taken to be increased by the amount the principal pays, or is liable to pay, to the intermediary; and
(b) the supply by the intermediary to the principal, to which the principal ' s payment or liability relates, is not a * taxable supply .
This section does not apply in relation to an acquisition if section 84-55 applies to the supply to which the acquisition relates.
Under section 84-55 , an inbound intangible consumer supply, or an offshore supply of low value goods, made through an electronic distribution platform (or a supply that is taken to be such a supply because of section 84-60 ) is treated as having been made by the operator of the platform.
This section has effect despite section 11-5 (which is about what are creditable acquisitions), section 11-10 (which is about what are acquisitions), section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).
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