Sales Tax Bulletin - No. 42

STB 42

The end of sales tax

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Date of Issue: 16 May 2000

Valid from 16 May 2000

About this Bulletin

A major part of The New Tax System is the introduction of the goods and services tax (GST) on 1 July 2000 to replace the present wholesale sales tax from the same date.

This bulletin explains how the sales tax regime will end and what you have to do in relation to sales tax matters after 30 June 2000. It does not discuss the special rules that apply to persons in the computer hardware industry. We will be writing to all accredited persons in that industry to advise them of their obligations. If you are in the computer hardware industry and require assistance, please call 13 28 66.

This bulletin is a public ruling for the purposes of section 77 of the Sales Tax Assessment Act 1992 and may be relied upon by any person to whom it applies. It is current as at 16 May 2000.

Outline of this Bulletin

Pages 1 and 2 of this bulletin discuss how sales tax will be ended and what rules will determine whether sales tax or GST applies to transactions falling either side of 1 July 2000.

On page 2, under the heading 'Who will be affected when sales tax ends on 30 June 2000?' - the 4 major groups of people who will be affected by the ending of sales tax, are identified.

The two least affected groups, consumers and exempt persons, are discussed on pages 2 and 3. The most affected group, registered persons, is discussed on pages 3 to 9. The fourth group, unregistered persons, is discussed on pages 9 to 11.

Pages 11 to 13 provide some general information on how to:

• • make sales tax payments after 30 June 2000

• • claim refunds

• • contact the Australian Taxation Office (ATO) to get more information.*

What happens to sales tax on 30 June 2000?

When the GST is introduced on 1 July 2000, the sales tax law is not being repealed. The only change is that you will not be liable for sales tax on dealings in goods made on or after 1 July 2000. All other provisions of the sales tax law will continue to operate including those relating to refunds of tax, collection of tax, penalties for offences and rights to have decisions reviewed.

There are special rules for determining whether transactions involving goods that currently attract sales tax are taxed under the sales tax or GST, and there are also rules for claiming the special GST credit for sales tax paid on stock on hand at the start of 1 July 2000.

What are the special rules that decide whether I pay sales tax or GST?

Broadly speaking, a supply or importation of goods before 1 July 2000 falls under the sales tax system. A supply or importation of goods on or after that date falls under the GST system.

Where you make a supply or importation of goods before 1 July 2000, but the actual time of the assessable dealing is on or after 1 July 2000, then the dealing is taken to have occurred immediately before 1 July 2000 and the transaction is taxable under the sales tax system. Conversely, where any payment is received or an invoice is issued before 1 July 2000, in connection with a supply or acquisition that is made on or after 1 July 2000, then the transaction falls under the GST.

If you are unsure of your obligations in regard to specific situations and require assistance, you may contact the ATO as advised at pages 12 to 13.

If you have any questions about how to claim the special GST credit for sales tax charged on stock on hand at 1 July 2000, the ATO has issued a comprehensive Taxation Ruling on this subject and an associated Bulletin gives practical assistance in how to calculate the special GST credit. The Taxation Ruling number is GSTR 2000/8, and the Bulletin reference is GST Bulletin GSTB 2000/1. On pages 12 to 13 we tell you how you may obtain them.

Who will be affected when sales tax ends on 30 June 2000?

Sales tax is generally imposed at the wholesale level and is recovered in the final price paid by the consumer, therefore everyone in the community will be affected. This bulletin deals with how the following four major groups will be affected:

• • Consumers: Private individuals or entities that are not exempt from sales tax.

• • Exempt Persons: End users who are not registered for sales tax but regularly claim exemption when they purchase goods that are normally subject to sales tax. The goods are exempt either because of the way they are used or because of who uses them. An example of goods that are normally subject to sales tax but are exempt because of the way they are used is a heavy motor vehicle used for livestock transport in approved remote areas. An example of goods that are exempt because of who uses them is anything purchased by a non-profit school or a government department.

• • Registered Persons: Persons registered for sales tax purposes such as manufacturers, wholesalers, importing wholesale distributors, mining companies and primary producers.

• • Unregistered Persons: Generally retailers who are not registered for sales tax, but who regularly sell to persons who are exempt from sales tax.

Consumers

Consumers will notice a change in some prices after the changeover to GST on 1 July 2000. While many prices will fluctuate slightly, some prices may increase or fall more noticeably. In practical terms, this is the only effect on consumers.

The Australian Competition and Consumer Commission (ACCC) is responsible for monitoring prices in the implementation of GST to ensure that GST is applied correctly and that no price exploitation takes place. If you have any enquiries on price exploitation and pricing in the lead up to The New Tax System, you may call the ACCC Pricing Hotline on 1300 302 502.

Exempt Persons

How am I affected by the end of sales tax?

You will have been purchasing goods free of sales tax for application to your own use by furnishing exemption declarations to your suppliers upon purchase of the goods.

On and after 1 July 2000 you will not be able to quote an exemption declaration to obtain goods GST free. Under the new GST system, different rules will apply for obtaining credit for tax paid on inputs. If you need advice on how input tax credits will work under GST, you should seek assistance as suggested at pages 12 to 13.

You must be able to demonstrate that any goods you purchased prior to 1 July 2000 free of sales tax:

• • are applied to your own use in exempt circumstances

• • were intended to be used for the required period.

You should refer to the heading 'Do I have to keep goods for a 2 year period that I purchased free of sales tax before 1 July 2000 and applied to my own use?' on page 8.

If, after 1 July 2000, you find that you have not claimed an exemption to which you are entitled on goods that you purchased before that date, you can apply to the ATO for a refund of the sales tax, provided the total of your claim is more than $200^[F1]. The way you claim the refund is set out under the heading 'How do I apply for a sales tax refund' on page 12.

Registered Persons

Can I still use my sales tax registration number after 30 June 2000?

On and from 1 July 2000, your sales tax registration number will cease to be effective in any practical sense. It will be of relevance only in relation to any residual sales tax obligations or entitlements you may have after 1 July 2000.

On and from 1 July 2000, you can not quote your sales tax number in respect of any assessable dealing in goods that occurs after that date^[F2]. When you purchase goods on or after 1 July 2000-whether they are raw materials or trading stock, the price that you pay should include GST, except in limited circumstances where supplies are GST-free or input taxed.

You should delete all reference to your sales tax number on your purchase order systems and stationery you use on or after 1 July 2000. You should make your purchasing staff aware that sales tax numbers are ineffective on or after that date and should not be quoted to suppliers in any circumstances^[F3].

It is very important that you and your staff understand that your sales tax registration number should not be confused with an Australian Business Number (ABN). You will not be able to use an ABN in the same way you now use your sales tax number. You will not be able to obtain goods GST free after 1 July 2000 by quoting an ABN. Different rules will apply under GST for obtaining credit for tax paid on inputs. If you need advice on how input tax credits will work under GST, you should seek assistance as suggested on pages 12 to 13.

Your sales tax number can not be substituted for an ABN where circumstances under The New Tax System require you to have an ABN. The ABN is central to the operation of The New Tax System. If you need an ABN and have not already applied for one, you should do so without delay. If you need more information on applying for an ABN or on how an ABN will be used under The New Tax System, you may seek assistance as suggested on pages 12 to 13.

Do I still show sales tax on wholesale sales I make after 30 June 2000?

In general, sales tax does not apply to dealings after 30 June 2000. You should ensure that your sales documentation such as price lists, invoices, delivery notes and the like, do not indicate that sales tax is payable in respect of any goods supplied on or after 1 July 2000

Many computer-based accounting systems and packages are programmed to show 'plus sales tax' on invoices issued, because the present sales tax law requires that sales tax be shown on invoices where goods are sold by wholesale for a price including sales tax. However, this can only apply to transactions involving goods supplied before 1 July 2000.

You should update your accounting system programs to stop showing 'plus sales tax' if they presently do so. You also need to make your staff aware that sales tax does not apply to supplies made on or after 1 July 2000.

After 1 July 2000, it remains an offence punishable by a $5,000 fine for any person to obtain a payment or other benefit by means of a false pretence concerning the amount of sales tax borne on goods.

What if I supplied goods to retailers under bailment before 30 June 2000?

It is a common commercial practice for retailers of goods to hold stock under arrangements such as 'Consignment' and 'On Sale or Return'. Usually, the retailer is a bailee and does not obtain property in the goods held until a retail buyer is found for the goods. When that happens, a sale (by wholesale) simultaneously takes place between the wholesale supplier and the retailer.

If you have goods held by retailers under such arrangements on 1 July 2000, and they sell the stock by retail on or after that date, there has been no sales tax assessable dealing in the stock before 1 July 2000 and sales tax is not payable. The wholesale sales made by you to the retailers will be taxed under the GST.

What if I make wholesale sales under Retention of Title (Romalpa) Clauses?

Another common commercial trading practice is to sell goods subject to a condition known as a Retention of Title or Romalpa clause. Stated briefly, a Romalpa clause allows the seller to retain title in goods sold until they are paid for, despite all other conditions of a sales contract being fulfilled-that is, a purchase order was placed, goods were allocated to the contract, a sales invoice issued, and the purchaser has taken delivery of the goods.

While the primary purpose of a Romalpa clause is to protect the rights of the seller in the event the buyer either fails to pay for the goods or becomes insolvent, such a clause can have the legal effect of deferring the timing of the assessable dealing between seller and buyer. It can also defer the time when a sales tax liability arises.

If you sell goods subject to a Romalpa clause before 1 July 2000 but will not receive payment for the goods until after that date, the assessable dealing between you and the buyer is taken to have occurred before 1 July 2000 and is therefore subject to sales tax. The sales tax on those dealings should be included in your final sales tax return. If you paid sales tax at the time of invoicing the goods-relying on the option given in Taxation Ruling No. SST 9-there is no further sales tax liability if the goods are sold after 30 June 2000.

What if a purchaser returns goods to me after 30 June 2000 that I sold before that date?

You may have some buyers who return goods to you on or after 1 July 2000 for a credit of the original purchase price, including the sales tax that you charged on a sale made before 1 July 2000. If you accept such sales returns and allow credit for the total price paid, you are entitled to a credit of the sales tax charged. The sales tax law recognises that the original sale (that is the assessable dealing) in respect of the goods did not occur, and therefore the tax is not legally payable. The credit provisions in the sales tax law remain effective after 1 July 2000.

You can claim the sales tax credit by following the process set out under the heading 'Can I still claim sales tax refunds after 30 June 2000?' on page 8. It is important to note that you can not offset the amounts in the Business Activity Statements (BAS) that you will be lodging after 1 July 2000.

What if, after 30 June 2000, I write off a bad debt relating to goods sold before that date and upon which sales tax was paid?

If you charge and pay sales tax on an assessable dealing before 30 June 2000, but after that date write off the debt as bad, you are entitled to claim a refund of a proportion of the sales tax previously paid. This proportion is equal to the proportion of the debt that is written off. For example, if you wrote off 50 per cent of the debt, you would be entitled to a credit of 50 per cent of the sales tax that you paid on the particular assessable dealing.

For help on how to claim the credit, you should refer to the section headed 'Can I still claim sales tax refunds after 30 June 2000?' on page 8. The most important thing to note for now is that you can not offset this credit in a BAS.

What if, after 30 June 2000, I recover bad debts for which I previously claimed a sales tax credit or refund?

If-on or after 1 July 2000-you recover all or part of a debt previously written off and relating to assessable dealings that occurred before that date-any sales tax previously credited in respect of the write-off becomes payable on a pro-rata basis in the same proportion that the amount recovered bears to the total amount written off. This is the case irrespective of whether the debt was written off before or after 1 July 2000.

If this applies to you, you will need to know how to repay the sales tax. You should refer to the section headed 'How do I make sales tax payments after 1 July 2000?' on pages 11 and 12.

What if I sell goods after 30 June 2000 on which I got a credit for replacements before 30 June 2000 because the original goods were defective?

If you obtained a credit prior to 1 July 2000 for sales tax on goods used to replace the whole or part of defective goods, and you later sell those defective goods which have not borne sales tax, the sales tax previously credited becomes payable on a pro-rata basis. For information on how to pay this amount, please refer to the section headed 'How do I make sales tax payments after 1 July 2000?' on pages 11 and 12.

You will also have to pay GST if the defective goods are sold on or after 1 July 2000.

How will the end of sales tax affect purchases I make after 30 June 2000?

As indicated under the heading 'Can I still use my sales tax registration number after 30 June 2000?' on page 3, you can not quote your sales tax number to buy goods GST free after 30 June 2000.

What if I am holding goods in stock under bailment before 30 June 2000 and haven't sold them at that date?

Some registered persons sell goods principally by retail. They are registered because they make some wholesale sales of assessable goods and incur a sales tax liability. Generally they do not quote their sales tax numbers when purchasing common stock for sale by retail or wholesale as occasion demands, but instead pay sales tax on purchase. They may quote their numbers in limited circumstances where they have a specific ground to do so-for example, when purchasing specific goods intended solely for export.

If you are a registered person in this category, you may hold stock on bailment from your supplier(s) in the same manner described above under the heading 'What if I supplied goods to retailers under bailment before 30 June 2000?' on page 4.

Even though you may hold such stock on 1 July 2000, there has been no assessable dealing for sales tax purposes. This does not occur until you find a retail buyer for the goods. If this occurs on or after 1 July 2000, there is no sales tax payable on that dealing. The dealings between you and your wholesale supplier, and between you and your retail customer, are taxed under the GST.

You are not entitled to the special GST credit in these circumstances. If you are unsure of your circumstances or the effect of the arrangement under which you are trading, you should seek assistance as suggested at pages 12 to 13.

What if I purchased goods subject to Retention of Title (Romalpa) clauses before 30 June 2000 and haven't sold them at that date?

This section will be relevant to you if you are a person who sells mainly by retail and do not quote a sales tax number on your purchases. It has little or no application to you if you are mainly a wholesaler who quotes a sales tax number for purchases of stock.

If you have ordered and have been supplied stock before 1 July 2000 under the terms of a Romalpa clause (see page 4), but will not pay for them until on or after that date, the assessable dealing is brought forward to immediately before 1 July 2000 and it is subject to sales tax.

If this applies to you and you did not quote your sales tax number to your supplier when you purchased the stock, you may be entitled to claim the special GST credit for sales tax charged on stock on hand at 1 July 2000. You should refer to Taxation Ruling GSTR 2000/8 and GST Bulletin GSTB 2000/1, or seek assistance as explained at pages 12 to 13.

Will I still have to lodge sales tax returns after 30 June 2000?

If you presently lodge sales tax returns and pay sales tax on a monthly basis, you are required to lodge a return for the month of June 2000 by 21 July 2000 and pay any sales tax liability you might have for that month.

If you presently lodge sales tax returns and pay sales tax on a quarterly basis, page 3 of your Sales Tax Return Book will tell you that, in any year, your end-of-financial-year lodgment quarter begins on 1 May and ends on 31 July-and that you have until 21 August to account for any sales tax payable in that quarterly period. With sales tax coming to an end on 30 June 2000, you will have no sales tax liability for dealings on and after 1 July 2000, so your final quarterly return will cover only the months of May 2000 and June 2000. However, if you are a quarterly lodger, you still have the benefit of the quarterly lodgment date provided in the law and have until 21 August 2000 to lodge a return or returns covering the period 1 May 2000 to 30 June 2000.

If you are a quarterly lodger, in your Sales Tax Return Book you will find separate return forms for May 2000 and June 2000 that each show the correct due date of 21 August 2000. If you choose to lodge returns monthly, you must lodge each of these returns on or before 21 August 2000. Alternatively, you should bring your total liability for the months of May 2000 and June 2000 to account on the June 2000 return form which you should lodge by 21 August 2000.

We give you more information on making sales tax payments under the heading 'How do I make sales tax payments after 1 July 2000?' on pages 11 and 12.

What if I haven't lodged sales tax returns for some earlier periods?

You remain fully liable for any unpaid amounts of sales tax relating to a period prior to 1 July 2000. If you have not lodged returns for any other months or quarters prior to June 2000 and have a liability to do so, you should lodge these immediately. You should also immediately pay the required tax or make a suitable arrangement for payment if you are unable to pay the full amount.

The ATO retains the power to recover sales tax liabilities after 1 July 2000. This includes the power to direct a person who owes money to a taxpayer with a sales tax liability, to pay some or all of the amount directly to the ATO.

Sales tax payments can not be included in the new BAS. We explain how you should make sales tax payments under the heading 'How do I make sales tax payments after 1 July 2000?' on pages 11 and 12.

What if I discover that I didn't account for sales tax on some dealings in earlier periods for which returns were lodged?

You remain liable for any undiscovered or unrecorded sales tax liabilities in respect of a period prior to 1 July 2000. If you discover that you have such liabilities, you should contact the ATO immediately and make arrangements to bring them to account.

How long do I have to keep records for sales tax?

You are required to keep sales tax related records for 5 years. This requirement remains in force after 1 July 2000. If you are a person who is the taxpayer for a sales tax assessable dealing or a claimant for a sales tax credit, you must keep records that record and explain the basis of transactions or other actions relevant to the dealing or credit claim.

Do I have to keep goods for a 2 year period that I purchased free of sales tax before 1 July 2000 and applied to my own use?

You may have purchased goods free of sales tax on the condition that the goods are to be applied to your own use for an exempt purpose. Examples include a farmer purchasing a four-wheel-drive utility truck for use in agricultural activities or a public benevolent institution purchasing a computer. Normally, the farmer will quote a sales tax registration number on purchase of the vehicle and the institution will quote an exemption declaration on purchase of the computer.

To gain the benefit of the sales tax exemption, the sales tax law requires that you must intend to use the goods for a minimum period that:

• • is the earliest of 2 years from the time the purchased goods are first applied to own use; or

• • is the time when the goods can no longer reasonably be used; or

• • is such other time that the Commissioner might approve.

This applies to all goods purchased tax free up to and including 30 June 2000.

If you intend to sell the goods after 30 June 2000 and before the minimum period expires, the exemption does not apply and you will be liable to pay sales tax on the purchase price of the goods.

Does the ATO have any power to enforce the sales tax law after 30 June 2000?

The ATO retains a wide range of powers to apply the sales tax law after 30 June 2000 including the power to require you to provide information or access to premises and records, to raise assessments, to impose penalties and to collect sales tax for dealings that you may not have disclosed.

In general terms, you are not liable for unpaid sales tax more than 3 years old unless the ATO has, within that 3 year period, required payment of the tax in writing, or finds that sales tax has been avoided by fraud or evasion. You are not liable for any sales tax underpaid if you have acted in reliance on the ATO's interpretation of the sales tax law in any written decision, ruling, advice or assessment.

Special obligations remain under the sales tax law for partners, agents, trustees, public officers and directors of companies, liquidators and receivers.

Can I still claim sales tax refunds after 30 June 2000?

You can not offset ordinary sales tax credits in a BAS you will be using after 1 July 2000.

You can off-set such credits against any sales tax payable in a sales tax return you are required to lodge for a month or quarter up to 30 June 2000. See 'Will I still have to lodge sales tax returns after 30 June 2000?' on page 7.

If you elect to off-set the credit, you pay only the net amount of sales tax to the ATO-the gross sales tax payable less the amount of the credit offset.

You may apply for a sales tax refund if the amount of the credit will exceed the amount of sales tax payable on a return, or if your entitlement to a credit does not arise until after you have lodged your final monthly or quarterly sales tax return. An example of the latter is if you provide a deferred credit by way of a trade incentive such as a volume rebate or settlement discount.

For guidance on how to claim a refund, see 'How do I apply for a sales tax refund?' at page 12.

Will I still be able to dispute decisions given by the ATO after 30 June 2000?

The current provisions which enable you to object against decisions given by the ATO and to appeal to various tribunals or courts are not affected by the end of sales tax.

Unregistered Persons

How will the end of sales tax affect sales that I make after 30 June 2000?

If you receive a quotation of a sales tax number or an exemption declaration from your customers on or after 1 July 2000, it is of no effect. This is because no assessable dealing on or after 1 July 2000 is subject to sales tax. If you have customers who continue to quote registration numbers or exemption declarations after that date^[F4], you should advise them accordingly.

You also need to be aware that a sales tax number is not an ABN and can not be used in place of one. It does not authorise the supply of goods or services GST free. You need to ensure that your staff are aware of this. If you require more information about ABN, please seek assistance as suggested at pages 12 to 13. See also the discussion under the heading 'Can I still use my sales tax registration number after 30 June 2000?' at page 3.

How will the end of sales tax affect purchases I make after 30 June 2000?

You should check whether any of your suppliers continue to charge any amounts to you as 'sales tax' for purchases on or after 1 July 2000. Such charges are not legal and you should immediately take up the matter with the supplier.

You should expect that any invoices you receive on or after this date will include GST.

You may have had little direct exposure to the collection of sales tax as it has been collected mainly at the wholesale level of the marketing chain. This will change on 1 July 2000 and you will become directly involved in the collection of GST and the claiming of input tax (GST) credits. If you are unsure of your liabilities under The New Tax System, a wide range of assistance is available to you. You may seek assistance as explained at pages 12 to 13.

You may have been quoting an exemption declaration to your suppliers when purchasing goods specifically for resale to persons entitled to exemption, such as schools, who quote an exemption declaration to you. You may also have been quoting an exemption declaration for goods that you applied to your own use in sales tax exempt circumstances.

On and after 1 July 2000 you will not be able to quote an exemption declaration to obtain goods GST free. Under the new GST system, different rules will apply for obtaining credit for tax paid on inputs. If you need advice on how input tax credits will work under the GST, you should seek assistance as explained at pages 12 to 13.

If you are a retailer, you may hold goods on consignment, sale or return, or some other form of bailment-or you may purchase goods subject to a retention of title (or Romalpa) clause. You should refer to the section dealing with registered persons on pages 3 to 9 of this bulletin for an explanation of those terms and how sales tax will apply after 30 June 2000.

You may be entitled to the special GST credit for sales tax charged on stock you have on hand at 1 July 2000. The ATO has issued two comprehensive publications on this subject, Taxation Ruling GSTR 2000/8, and GST Bulletin GSTB 2000/1. Refer to pages 12 to 13 for advice on how to obtain copies of these publications.

What obligations in relation to sales tax will I have after 30 June 2000?

You do not cease to be liable for any past sales tax liabilities that you may have incurred, inadvertently or otherwise, up to and including 30 June 2000. You have the same obligations as a registered person in relation to the lodgment of returns and the payment of any outstanding amounts of sales tax. If this applies to you, you should contact the ATO without delay on 13 28 66 and seek advice on how to account for this liability.

Even though you may not be registered and not engaging in assessable dealings, you still have a liability to maintain sales tax records for 5 years if you claim sales tax refunds. You should maintain for 5 years any records that record and explain the basis of all transactions and other actions relevant to your refund claims.

You must be able to demonstrate that any goods purchased by you prior to 1 July 2000-free of sales tax and applied to your own use in exempt circumstances-were intended to be used for the required period. You should refer to the heading 'Do I have to keep goods for a 2 year period that I purchased free of sales tax before 1 July 2000 and applied to my own use?' on page 8.

What rights or entitlements under the sales tax law will I have after 30 June 2000?

All existing rights and entitlements under the sales tax law will remain after 30 June 2000. The most important one for unregistered persons relates to the claiming of refunds-in particular, the manner in which they should be claimed. You should also note that claims for less than $200 will not generally be considered^[F5]. For more information, refer to the section headed 'Can I still claim sales tax refunds after 30 June 2000?' at page 8.

If I am presently unregistered for sales tax but, prior to 30 June 2000, commence a business which would be entitled to be registered, can I still apply for a sales tax number?

You may still apply for a sales tax number. You are able to quote that number when entitled to do so at or before the time of any assessable dealing occurring on or before 30 June 2000. The number will also be your account number for the payment of any sales tax payable by you up to and including 30 June 2000.

In practice, however, it is unlikely that you will receive your sales tax number in time to be able to quote it for purchases or use it to make payments before 30 June 2000. You cannot quote a sales tax number retrospectively^[F6], so you would need to apply for a sales tax refund in respect of any goods that you may have purchased prior to 30 June 2000 and on which you would have been entitled to quote the number.

If this applies to you, please refer to the section headed 'Can I still claim sales tax refunds after 30 June 2000?' at page 8 in relation to refunds, and the section below headed 'How do I make sales tax payments after 30 June 2000?' in relation to making payments.

General Information

How do I make sales tax payments after 1 July 2000?

(a) Registered Persons

If you are a registered person lodging your final sales tax return for the month of June 2000, or the quarter including June 2000, you can not include the sales tax payable on the BAS that you will be using for tax liabilities under The New Tax System. You will have a Sales Tax Return Book for the 1999/2000 financial year which will have the necessary remittance form to cover your final sales tax period. You should use this form to make your sales tax payment.

If you have a further sales tax amount to pay after you have lodged your final return, you still can not use the BAS to make the payment. An example would be if you recover a bad debt in September 2000 on an assessable dealing made before 1 July 2000. In this situation, you should make your payment by cheque with an accompanying letter.

The letter to the ATO should provide the following details:

• • your sales tax registration number and your tax file number

• • the amount payable

• • a brief explanation of the nature of the payment

• • the period to which it relates

• • the name and business hours phone number of someone in your organisation whom we may contact about the payment if we need to.

You should enclose a cheque for the sales tax made out to the Australian Taxation Office and crossed with the endorsement 'Not Negotiable A/C Payee Only'. The letter and cheque should be mailed to the ATO as follows:

If you are in Victoria, Tasmania, Western Australia, South Australia, or overseas:

If you are in New South Wales, Queensland, or Australian Capital Territory:

(b) Unregistered persons

If you are an unregistered person who has to make a sales tax payment after 1 July 2000, you will not have a Sales Tax Return Book, so you should make your payment by cheque and accompanying letter in the same manner as a registered person above. You should include in your letter the same details as set out above. Although you will not have a sales tax registration number, you should have a tax file number-supply this and the ATO will apply your cheque to an appropriate account.

How do I apply for a sales tax refund?

You must apply for the refund on an Application for Refund of Sales Tax form. This form may be obtained by calling the ATO on 13 28 66 or from the ATO Internet site at www.ato.gov.au

You must also apply for the refund within three years of the time when the entitlement to the credit arises. Most commonly, this is when the tax was borne on the assessable dealing.

The total of your claim should be more than $200^[F7] because the ATO is not required to consider claims for less than this amount.

Finally, you are again reminded that you can not offset ordinary sales tax credits in a BAS.

Do you need more information?

If you need information related only to the sales tax law (not including GST or the special GST credit) please contact the ATO:

• • by phone on our national Sales Tax Helpline on 13 28 66 - you can ring this number from anywhere in Australia for the cost of a local call;

• • on A Fax From Tax, our 24 hour fax information service - simply call 13 28 60 (local call cost) on your phone or fax and follow the voice prompts; or

• • at our Internet site, ATOassist at www.ato.gov.au

If you need information related to the claiming of the special GST credit for sales tax charged on stock on hand at 1 July 2000, the GST or other aspects of The New Tax System please contact the ATO:

• • by phone on the Tax Reform Helpline on 13 24 78;

• • on A Fax From Tax, our 24 hour fax information service - simply call 13 28 60 (local call cost) on your phone or fax and follow the voice prompts; or

• • at the Tax Reform Internet site at www.taxreform.ato.gov.au

If you want to obtain copies of the Taxation Ruling and Bulletin on the special GST credit, you may obtain them:

• • on A Fax From Tax, our 24 hour fax information service - simply call 13 28 60 (local call cost) on your phone or fax and follow the voice prompts; or

• • from the Tax Reform Internet site at www.taxreform.ato.gov.au

ATO references:
NO