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ATO Interpretative Decision

ATO ID 2001/123 (Withdrawn)

Goods and Services Tax

GST simplified accounting methods
FOI status: may be released
CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Can the entity, a restaurant, choose to apply a simplified accounting method for retailers under subsection 123-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Decision

No, the entity cannot choose to apply a simplified accounting method for retailers under subsection 123-10(1) of the GST Act.

Facts

The entity is a restaurant. The entity does not sell GST-free food. The entity is registered for goods and services tax (GST).

Reasons for Decision

Subsection 123-10(1) of the GST Act provides that an entity may choose to apply a simplified accounting method if it is a retailer of the kind to whom the method is available.

The Commissioner has determined in writing (as per section 123-5 of the GST Act), the eligibility criteria that must be satisfied by food retailers wanting to use a simplified accounting method. This written determination is found in 'Simplified GST Accounting Methods for Food Retailers'.

This document provides that to be eligible to use a simplified accounting method for food retailers, an entity must:

•
be registered for GST; and
•
be a retailer who sells both taxable and GST-free food from the same premises; and
•
have an annual turnover of less than $2 million; and
•
not have adequate point of sale equipment to identify and record its mix of taxable and GST-free supplies.

The entity does not sell both taxable and GST-free food. Therefore, the entity is not able to choose to apply a simplified accounting method for food retailers under subsection 123-10(1) of the GST Act.

Date of decision:  1 June 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 123-5
   subsection 123-10(1)

Other References:
'Simplified GST Accounting Methods for Food Retailers' (Nat 3185)

Keywords
Goods & services tax
GST food

Business Line:  GST

Date of publication:  25 July 2001

ISSN: 1445-2782

history
  Date: Version:
  1 June 2001 Original statement
You are here 18 November 2005 Archived

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