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Edited version of private advice
Authorisation Number: 1051972925144
Date of advice: 14 April 2022
Ruling
Subject: GST - fees and charges
Question 1
Does the Commissioner agree that for GST purposes under the proposed arrangement, Entity A will not collect fees and charges in respect of the supply of services as Principal, but do so merely as collection agent for Entity B?
Answer
Yes.
Question 2
Under the proposed arrangement, are the fees and charges collected by Entity A as collection agent for Entity B, consideration for taxable supplies made by Entity A?
Answer
No.
Question 3
Will payments of taxes, fees and charges payable to Entity B for which Division 81 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) currently applies, continue to meet the definition of an "Australian tax" or "Australian fee or charge" when collected by Entity A as collection agent of Entity B under the proposed arrangement?
Answer
Yes.
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 Section 9-40
A New Tax System (Goods and Services Tax) Act 1999 Division 81