Goods and Services Tax Ruling
GSTR 2003/11A1 - Addendum
Goods and services tax: payment on early termination of a lease of goods
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Addendum
This Addendum amends Goods and Services Tax Ruling GSTR 2003/11 to reflect amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). In particular, the Addendum updates GSTR 2003/11 for amendments made to Subdivision 29-C.
The amendments to Subdivision 29-C are in relation to tax invoices and apply to net amounts for tax periods starting on or after 1 July 2010.
This Addendum also makes further minor amendments to GSTR 2003/11 for other minor technical changes and to update the references section of GSTR 2003/11.
GSTR 2003/11 is amended as follows:
In the third dot point, omit 'State or Territory'; substitute 'Commonwealth'.
Omit footnote; substitute:
2 See for example, subsection 179(1) of the National Consumer Credit Protection Act 2009 (Cth).
Omit paragraphs 6 and 7; substitute:
6. This Ruling applies both before and after its date of issue. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10).
7. Changes made to this Ruling by the Addendum that issued on 24 April 2013 have been incorporated into this version of the Ruling.[5A]
In the third dot point, omit 'State or Territory'; substitute 'Commonwealth'.
Omit the footnote; substitute:
6 See for example, subsection 179(1) of the National Consumer Credit Protection Act 2009 (Cth).
Omit the footnote; substitute:
9 The following analysis is based on GSTR 2001/4.
Omit 'section 9-15'; substitute 'sections 9-15 and 9-17'.
- (a)
- In the associated heading, omit 'State or Territory'; substitute 'Commonwealth'.
- (b)
- Omit 'State or Territory consumer credit legislation'; substitute 'the National Consumer Credit Protection Act 2009 (Cth)'.
Omit the first two sentences including footnote 27; substitute:
Part 11 of the National Consumer Credit Protection Act 2009 (Cth) regulates certain consumer leases relating to goods and also confers statutory rights on the lessee which cannot be excluded by agreement between parties.
Omit 'Part 10 of the Code'; substitute 'The National Consumer Credit Protection Act 2009 (Cth)'.
Omit 'Part 10 of the Code'; substitute 'Part 11 of the National Consumer Credit Protection Act 2009 (Cth)'.
Omit the footnote; substitute:
28 See subsection 179(1) of the National Consumer Credit Protection Act 2009 (Cth).
Omit the footnote; substitute:
29 See subsection 179(2) of the National Consumer Credit Protection Act 2009 (Cth).
Omit 'Part 10 of the Code'; substitute 'Part 11 of the National Consumer Credit Protection Act 2009 (Cth)'.
Omit 'Part 10 of the Code'; substitute 'Part 11 of the National Consumer Credit Protection Act 2009 (Cth)'.
Insert 'Commonwealth' after the words 'or under'.
In the associated heading insert 'Commonwealth' after the words 'or under'.
In the associated heading insert 'Commonwealth' after the words 'or under'.
Insert 'Commonwealth' after the words 'or under'.
Omit the footnote; substitute:
67 Assuming the notice meets the requirements for a tax invoice or the lessor provides a separate tax invoice which the lessee holds when it lodges its return. Paragraphs 109 to 111 of GSTR 2013/1 discuss the requirements for a tax invoice in the context of supplies made for a period or on a progressive basis, such as a supply by way of lease.
Under the example headed 'Voluntary termination' omit 'Consumer Credit Code' and substitute 'National Consumer Credit Protection Act 2009 (Cth)'.
In the last sentence of the example, omit 'Consumer Credit Code' and substitute 'National Consumer Credit Protection Act 2009 (Cth)'.
Omit:
Early termination pursuant to State or Territory consumer credit legislation 51
Alternative view on the GST treatment of early termination resulting from exercising a right to terminate early either in accordance with the original terms of the lease or under consumer credit legislation- Payments made on early termination by the lessee under the original terms of the lease are not consideration for a supply 105
Alternative view on the GST treatment of early termination resulting from exercising a right to terminate early in accordance with the original terms of the lease, under a separate agreement or under consumer credit legislation- Payments made on early termination are compensatory and do not have a sufficient nexus with a supply 108
Substitute:
Early termination pursuant to Commonwealth consumer credit legislation 51
Alternative view on the GST treatment of early termination resulting from exercising a right to terminate early either in accordance with the original terms of the lease or under Commonwealth consumer credit legislation- Payments made on early termination by the lessee under the original terms of the lease are not consideration for a supply 105
Alternative view on the GST treatment of early termination resulting from exercising a right to terminate early in accordance with the original terms of the lease, under a separate agreement or under Commonwealth consumer credit legislation- Payments made on early termination are compensatory and do not have a sufficient nexus with a supply 108
24. Related Rulings/Determinations
Omit 'GSTR 1999/1; GSTR 2000/17'; substitute 'GSTR 2013/1; TR 2006/10'.
Omit:
- Consumer Credit (ACT) A95 4
- Consumer Credit (NSW) A95 5
- Consumer Credit (NT) A95 4
- Consumer Credit (Qld) A94
- Consumer Credit (Qld) Code Part 10
- Consumer Credit (Qld) Code 157
- Consumer Credit (Qld) Code 157(1)
- Consumer Credit (Qld) Code 157(2)
- Consumer Credit (SA) A95 5
- Consumer Credit (Tas) A96 5
- Consumer Credit (Vic) A95 5
- Consumer Credit (WA) A96
- Consumer Credit (WA) Code Part 10
Insert:
- ANTS(GST)A99 9-15(2)
- ANTS(GST)A99 9-17
- ANTS(GST)A99 29-70(1)
- National Consumer Credit Protection Act 2009 (Cth) Pt 11
- National Consumer Credit Protection Act 2009 (Cth) 179(1)
- National Consumer Credit Protection Act 2009 (Cth) 179(2)
Omit from the second paragraph 'Consumer Credit Code'; substitute 'National Consumer Credit Protection Act 2009 (Cth).'
Omit the last sentence in the second paragraph; substitute 'The lease is not regulated by Commonwealth consumer credit legislation.'.
This Addendum explains the Commissioner's view of the law as it applies from 1 July 2010.
Commissioner of Taxation
24 April 2013
References
ATO references:
NO 1-281X3IA