Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (52 of 2016)

Schedule 2   GST treatment of cross-border transactions between businesses

Part 1   Cross-border supplies that are not connected with the indirect tax zone

A New Tax System (Goods and Services Tax) Act 1999

12   After section 84-15

Insert:

84-20 The price of taxable supplies of offshore intangibles without, or for inadequate, consideration

(1) The price of a supply that is a *taxable supply because of section 84-5 is the *GST inclusive market value of the supply, if:

(a) the supply is from the *recipient's *associate; and

(b) the supply is:

(i) without *consideration; or

(ii) for consideration that is less than the GST inclusive market value.

Note: A supply to an associate without consideration may be a taxable supply, see section 72-5.

(2) This section has effect despite section 9-75 (which is about the price of taxable supplies).

84-25 Tax periods for supplies from associates that are not connected with the indirect tax zone

(1) This section applies if a supply that is a *taxable supply because of section 84-5 is:

(a) a supply from the *recipient's *associate without *consideration; and

(b) not *connected with the indirect tax zone.

Note: If the supply is connected with the indirect tax zone, see sections 72-15 and 72-50 for the tax periods.

(2) The tax period to which the GST on the supply, and the input tax credit on the acquisition, is attributable is the tax period in which the thing supplied starts to be done.

(3) This section has effect despite:

(a) sections 29-5 and 72-15 (about attributing GST to tax periods); and

(b) sections 29-10 and 72-50 (about attributing input tax credits to tax periods).

84-30 Adjustments for acquisitions made solely for a creditable purpose

(1) This section applies to an acquisition that relates to a supply if the supply would be a *taxable supply under section 84-5 if paragraph 84-5(1)(ca) were disregarded.

(2) For the purpose of working out whether there is an *adjustment for the acquisition, and the amount of that adjustment, disregard paragraph 84-5(1)(ca).

Note: As a result, the adjustment (including the full input tax credit referred to in sections 129-70 and 129-75) is worked out assuming the supply is taxable and the acquisition fully creditable.