A New Tax System (Goods and Services Tax) Act 1999

Chapter 2 - The basic rules  

Part 2-2 - Supplies and acquisitions  

Division 9 - Taxable supplies  

Subdivision 9-A - What are taxable supplies?  

9-26   Supplies by non-residents that are not connected with the indirect tax zone  

(1)  
A supply is not connected with the indirect tax zone if:


(a) the supplier is a *non-resident; and


(b) the supplier does not make the supply through an *enterprise that the supplier * carries on in the indirect tax zone ; and


(c) the supply is covered by an item in this table:


Offshore supplies that are not connected with the indirect tax zone
Item Topic These supplies are not connected with the indirect tax zone [mldr ]
1 Inbound intangible supply a supply of anything other than goods or *real property if:
(a) the thing is done in the indirect tax zone; and
(b) the *recipient is an *Australian-based business recipient of the supply.
2 Intangible supply between non-residents a supply of anything other than goods or *real property if:
(a) the thing is done in the indirect tax zone; and
(b) the *recipient is a *non-resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.
3 Supply between non-residents of leased goods a supply by way of transfer of ownership of leased goods if:
(a) the *recipient is a *non-resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(b) the lessee:
(i) made a *taxable importation of the goods before the supply was made; and
(ii) continues to lease the goods on substantially similar terms and conditions after the supply is made.
4 Supply by way of continued lease of goods from item 3 a supply made by way of lease if:
(a) the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and
(b) the lease is the lease referred to in subparagraph (ii) of that paragraph.

Note:

This subsection does not apply to supplies made by a non-resident through a resident agent if they have agreed it is not to apply: see section 57-7 .

(2)  
An entity is an Australian-based business recipient of a supply made to the entity if:


(a) the entity is *registered; and


(b) an *enterprise of the entity is *carried on in the indirect tax zone; and


(c) the entity ' s acquisition of the thing supplied is not solely of a private or domestic nature.

Note:

If a supply is not connected with the indirect tax zone, the Australian-based business recipient may be subject to a reverse charge: see Subdivision 84-A .

(3)  
This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).


 

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