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Edited version of your written advice
Authorisation Number: 1012992897040
Ruling
Subject: Reduced credit acquisitions
Question
Is Entity A making a reduced credit acquisition under item 27 in the table in subregulation 70-5.02(2) of the GST regulations, for the acquisition from Entity B under the Agreement?
Answer
Yes, as Entity A is the financial supply provider and making an acquisition from a financial supply facilitator for which the consideration is determined on a commission basis, we accept that Entity A is making a reduced credit acquisition under item 27 in the table in subregulation 70-5.02(2) of the GST regulations.
Relevant facts and circumstances
As part of Entity A's business, Entity A operates and maintains ATM' s at various locations.
To enable Entity A to provide an ATM service from the ATMs it operates, Entity A enters into agreements with the relevant counterparties, such as merchants or building owners.
The relevant arrangements between Entity A and various counterparties generally involve each of the counterparties granting Entity A a licence to operate and maintain the ATMs in licenced areas during the term of each agreement, and a licence to enter premises (or provide site access) for the purposes of Entity A performing its obligations under the agreement.
For the purposes of this private ruling request Entity A have provided an Agreement which set out the terms and conditions that apply to the arrangements between Entity A and Entity B.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Division 11
A New Tax System (Goods and Services Tax) Act 1999 section 70-5
A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 40-05.09(4A)
A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 70-05.02(2)