TAXATION RULING NO. ST 2205

ST 2205

SALES TAX : VIDEO TAPES, PRE-RECORDED AND BLANK

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FOI status:

May be releasedFOI number: I 1205722

PREAMBLE

Taxation Ruling No. ST 2095 states that pre-recorded video tapes may be classified at three rates, 7.5%, 20% or 32.5%, depending on the nature of their content and use. The Ruling stated that blank and pre-recorded video tapes of a kind used with video players and recorders are covered by sub-item 46(2B), Second Schedule and taxable at the rate of 32.5% subject to two exclusions. The first exclusion relates to goods to which item 6, Third Schedule applies. The second exclusion relates to goods to which paragraphs 6(1)(a) and 6(1)(b), Third Schedule, apply. The latter goods are not covered by either sub-item 46(2B), Second Schedule, or by sub-item 6(1), Third Schedule and are taxable at the general rate.

2. The Sales Tax (Exemptions and Classifications) Amendment Act 1985 - Act No. 145 of 1985 - omitted item 46 from the Second Schedule. Goods that were covered by item 46, Second Schedule, became taxable at the rate of 20% on and after 20 September 1985.

3. The sales tax classification of pre-recorded video tapes is now determined by the provisions of item 6, Third Schedule. Pre-recorded video tapes that are exhibition copies of motion picture films are subject to tax at 10% under sub-item 6(1), Third Schedule, unless they are excluded by any of the three following paragraphs in that sub-item :-

(a)

Exhibition copies of films for the private, domestic or personal use of the person by or for whom they are produced (broadly stated, these are personal films or videos);

(b)

exhibition copies of film to be screened or televised exclusively, or primarily and principally, for advertising purposes (i.e. advertising films or videos); or

(c)

pre-recorded video tapes or pre-recorded video discs for use for the private, domestic or personal purposes of any person (broadly stated these are videos sold or hired for viewing at home, for example, on a domestic video cassette recorder).

RULING

4. Exhibition copies of pre-recorded video tapes sold for commercial or industrial purposes, other than those used for advertising purposes, are taxable at the rate of 10%. Pre-recorded advertising video tapes and all other pre-recorded video tapes are taxable at the rate of 20%.

5. The guidelines provided in Ruling No. ST 2095 for classifying pre-recorded video tapes are revised as follows :-

6. The above guidelines apply to pre-recorded video tapes produced in Australia and imported into Australia.

7. The repeal of item 46 means that from 20 September 1985 all blank video tapes will be taxable at 20%. Prior to 20 September 1985 blank video tapes were taxable at 32.5% under sub-item 46(2B), Second Schedule.

8. Taxation Ruling No, ST 2095 is operative in relation to the application of sub-item 46(2B) until 19 September 1985. Thereafter it is modified according to this Ruling.

COMMISSIONER OF TAXATION
6 January 1986

References

ATO references:
NO 85/9192-0

Date of effect:
20 Sep 1985

Related Rulings/Determinations:

ST 2095

Subject References:
VIDEO TAPES PRE-RECORDED AND BLANK

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 46, SECOND SCHEDULE,
ITEM 6, THIRD SCHEDULE,.