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Edited version of private advice
Authorisation Number: 1052255560939
NOTICE
The private ruling on which this edited version is based has been overturned on objection.
This notice must not be taken to imply anything about the correctness of other edited versions.
Date of advice: 27 May 2024
Ruling
Subject: GST and consideration
Question
Are the payments you make consideration for a supply made by A to you, within the meaning of paragraph 9-5(a) of the GST Act?
Answer
No, the payments you make are consideration for supplies made by A to B, not A to you. You are a third party payer in this arrangement. Paragraph 9-5(a) and section 9-15 do not require the provider of the consideration to also be the recipient of the supply for there to be a supply made for consideration. This is made clear in the wording of subsection 9-15(2).
Relevant facts and circumstances
You are an entity set up to make payments to Entity A. You make payments to Entity A for services they undertake. Entity A's services are provided to a third entity, Entity B, pursuant to contractual arrangements. You are not a party to this particular contract.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-5(a)
A New Tax System (Goods and Services Tax) Act 1999 section 9-10
A New Tax System (Goods and Services Tax) Act 1999 section 9-15
A New Tax System (Goods and Services Tax) Act 1999 section 195-1