GST issues registers
Financial services - questions and answersMoney transfer service
(a) added, (u) updated, (w) withdrawn
| Issue no | Issue | Date |
|---|---|---|
| 11.1 | What are the GST implications for the supply of an international inbound money transfer service to a customer overseas by an overseas money transfer service entity (via its agent overseas)? | 8 August 2002(a) |
| 11.2 | What are the GST implications for the supply of an international outbound money transfer service to a customer in Australia by an overseas money transfer service entity (via its agent in Australia)? | 1 April 2019(u) |
| 11.3 | What are the GST implications for the supply of an intra-Australia money transfer service to a customer within Australia by an overseas money transfer service entity (via its agent within Australia)? | 1 April 2019(u) |
11.1 What are the GST implications for the supply of an international inbound money transfer service to a customer overseas by an overseas money transfer service entity (via its agent overseas)?
Non-interpretative - straight application of the law
The supply of an international inbound money transfer service to a customer overseas by an overseas money transfer service entity represents the creation of a right by the overseas entity to a customer overseas. The supply is outside the scope of the Australian GST system as the supply of that right is created overseas and not in the indirect tax zone and hence not connected with the indirect tax zone.
11.2. What are the GST implications for the supply of an international outbound money transfer service to a customer in Australia by an overseas money transfer service entity (via its agent in Australia)?
Non-interpretative - straight application of the law
The supply of an outbound money transfer service to a customer in Australia by an overseas money transfer service entity is the creation of an interest in a debt under item 2 in the table in subsection40-5.09(3) of the GST Regulations and hence will be a financial supply where all the requirements of subsection 40-5.09(1) of the GST Regulations are satisfied.
11.3. What are the GST implications for the supply of an intra-Australia money transfer service to a customer within Australia by an overseas money transfer service entity (via its agent within Australia)?
Non-interpretative - straight application of the law
The supply of an intra-Australia money transfer service to a customer within Australia by an overseas money transfer service entity is the creation of an interest in a debt under item 2 in the table in subsection 40-5.09(3) of the GST Regulations and hence will be a financial supply where all the requirements of subsection 40-5.09(1) of the GST Regulations are satisfied.
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