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Edited version of private advice
Authorisation Number: 1052092694085
Date of advice: 8 March 2023
Ruling
Subject: GST and foreign exchange rates
The Commissioner was asked to rule on:
Whether the methodology used by the entity to determine the amount of input tax credits to be claimed for creditable acquisitions made and paid for by the entity in a foreign currency denomination consistent with the commissioner of Taxation's views outlined in goods and services tax ruling GSTR 2001/2 Goods and Services Tax Ruling: Goods and services tax: foreign exchange conversions?
The Commissioner ruled:
The methodology proposed by the entity to determine the amount of input tax credits to be claimed for creditable acquisitions made and paid for by the entity in a foreign currency denomination is consistent with the Commissioner's views outlined in GSTR 2001/2.
This ruling applies for the following period:
3 March 2023 - 3 March 2027
Relevant legislative provisions
Subsection 29-70(1) of the A New Tax System (Goods and Services Tax) Act 1999