A New Tax System (Goods and Services Tax) Act 1999
Chapter 2
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The basic rules
Part 2-2
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Supplies and acquisitions
Division 9
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Taxable supplies
Subdivision 9-A
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What are taxable supplies?
9-26
Supplies by non-residents that are not connected with the indirect tax zone
(1)
A supply is not connected with the indirect tax zone if:
(a) the supplier is a *non-resident; and
(b) the supplier does not make the supply through an *enterprise that the supplier * carries on in the indirect tax zone ; and
(c) the supply is covered by an item in this table:
(2)
An entity is an Australian-based business recipient of a supply made to the entity if:
(a) the entity is *registered; and
(b) an *enterprise of the entity is *carried on in the indirect tax zone; and
(c) the entity ' s acquisition of the thing supplied is not solely of a private or domestic nature.
(3)
This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).
A supply is not connected with the indirect tax zone if:
(a) the supplier is a *non-resident; and
(b) the supplier does not make the supply through an *enterprise that the supplier * carries on in the indirect tax zone ; and
(c) the supply is covered by an item in this table:
| Offshore supplies that are not connected with the indirect tax zone | ||
| Item | Topic | These supplies are not connected with the indirect tax zone … |
| 1 | Inbound intangible supply | a supply of anything other than goods or *real property if: |
| (a) | the thing is done in the indirect tax zone; and | |
| (b) | the *recipient is an *Australian-based business recipient of the supply. | |
| 2 | Intangible supply between non-residents | a supply of anything other than goods or *real property if: |
| (a) | the thing is done in the indirect tax zone; and | |
| (b) | the *recipient is a *non-resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone. | |
| 3 | Supply between non-residents of leased goods | a supply by way of transfer of ownership of leased goods if: |
| (a) | the *recipient is a *non-resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and | |
| (b) | the lessee: | |
| (i) | made a *taxable importation of the goods before the supply was made; and | |
| (ii) | continues to lease the goods on substantially similar terms and conditions after the supply is made. | |
| 4 | Supply by way of continued lease of goods from item 3 | a supply made by way of lease if: |
| (a) | the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and | |
| (b) | the lease is the lease referred to in subparagraph (ii) of that paragraph. |
Note:
This subsection does not apply to supplies made by a non-resident through a resident agent if they have agreed it is not to apply: see section 57-7 .
(2)
An entity is an Australian-based business recipient of a supply made to the entity if:
(a) the entity is *registered; and
(b) an *enterprise of the entity is *carried on in the indirect tax zone; and
(c) the entity ' s acquisition of the thing supplied is not solely of a private or domestic nature.
Note:
If a supply is not connected with the indirect tax zone, the Australian-based business recipient may be subject to a reverse charge: see Subdivision 84-A .
(3)
This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).
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