Treasury Laws Amendment (GST Low Value Goods) Act 2017 (77 of 2017)

Schedule 1   Extending GST to low value imported goods

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

49   After Division 144

Insert:

Division 146 - Limited registration entities

146-1 What this Division is about

Non-residents may elect to be limited registration entities. Limited registration entities are not entitled to input tax credits for acquisitions and importations, and must have quarterly tax periods.

Note: The Commissioner may approve simpler approved forms for limited registration entities: see subsection 388-50(3) in Schedule 1 to the Taxation Administration Act 1953.

146-5 Limited registration entities

(1) You are a limited registration entity for a tax period applying to you if an election under subsection (2) is in effect for you during the period.

Electing to be a limited registration entity

(2) You may, by notifying the Commissioner in the *approved form, make an election under this subsection if you are a *non-resident who:

(a) makes, or intends to make, one or more supplies that are:

(i) *inbound intangible consumer supplies; or

(ii) *offshore supplies of low value goods that were, or would be, *connected with the indirect tax zone, solely because of Subdivision 84-C; or

(b) is, or intends to become, a *redeliverer of *offshoresupplies of low value goods.

When an election is in effect

(3) The election:

(a) takes effect from the start of the tax period you nominate in the election; and

(b) if your *registration is cancelled and the date of effect of the cancellation occurs after the start of that tax period - ceases to have effect on the date of effect of the cancellation; and

(c) if paragraph (b) does not apply and, under subsection (5), you revoke the election - ceases to have effect at the start of your first tax period to start after the revocation.

(4) However, the election never takes effect if your *registration is cancelled and the date of effect of the cancellation occurs on or before the start of the tax period you nominate in the election.

Revoking an election

(5) You may, by notifying the Commissioner in the *approved form, revoke an election under subsection (2).

(6) However, subsection (5) does not apply if you have been notified that the Commissioner has decided to cancel your *registration (whether or not the cancellation has already taken effect).

146-10 Limited registration entities cannot make creditable acquisitions

(1) An acquisition made by a *limited registration entity is not a *creditable acquisition if an election under subsection 146-5(2) is in effect for the entity when the acquisition is made.

(2) However, subsection (1) does not apply, and is taken never to have applied, to the acquisition if you revoke the election under subsection 146-5(5) during:

(a) the *financial year in which the acquisition is made; or

(b) the next financial year.

(3) This section has effect despite section 11-5 (which is about what is a creditable acquisition).

146-15 Limited registration entities cannot make creditable importations

(1) An importation made by a *limited registration entity is not a *creditable importation if an election under subsection 146-5(2) is in effect for the entity when the importation is made.

(2) However, subsection (1) does not apply, and is taken never to have applied, to the importation if you revoke the election under subsection 146-5(5) during:

(a) the *financial year in which the importation is made; or

(b) the next financial year.

(3) This section has effect despite section 15-5 (which is about what is a creditable importation).

146-20 Entries in the Australian Business Register

(1) Subsection 25-10(2) does not apply if:

(a) you become *registered; and

(b) on the date your registration takes or took effect, you are a *limited registration entity.

Note: Under subsection 25-10(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.

(2) However, if:

(a) you cease to be a *limited registration entity at a time when you are *registered; and

(b) because of subsection (1) of this section, subsection 25-10(2) did not apply to your registration;

subsection 25-10(2) is taken to apply from the time you cease to be a limited registration entity.

(3) Subsection 25-60(2) does not apply if:

(a) your *registration is cancelled; and

(b) because of subsection (1) of this section, the date on which your registration took effect was not entered in the *Australian Business Register; and

(c) immediately before the cancellation took effect, you were a *limited registration entity.

Note: Under subsection 25-60(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.

146-25 Limited registration entities have only quarterly tax periods

(1) If you are a *limited registration entity, you cannot make an election under section 27-10, and the Commissioner cannot determine your tax periods under section 27-15 or 27-37.

Note: Sections 27-10 and 27-15 provide for each individual month to be a tax period. Section 27-37 provides for 12 complete tax periods in each year.

(2) An election by you under section 27-10 or a determination under section 27-15 or 27-37 in relation to you is taken not to be in force at any time during which you are a *limited registration entity.

(3) This section has effect despite sections 27-10, 27-15 and 27-37 (which are about one month tax periods).