7 (Goods and Services Tax)[1]

Cch australia limited creditable acquisitions

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© CCH Australia Limited Creditable acquisitions  Creditable acquisitions  An entity makes a “creditable acquisition” if: The entity acquires something solely or partly for a  “creditable purpose” The supply of the thing to the entity was a taxable  supply The entity provides consideration for the supply,  and The entity is registered or required to be registered
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Foundations of Taxation Law [¶7.8](b) © CCH Australia Limited Creditable purpose Creditable purpose Something is acquired or imported for a “creditable  purpose” to the extent that it is acquired or imported  in carrying on the entity’s enterprise However, the thing is not acquired or imported for a  creditable purpose to the extent that it:  Relates to making supplies that would be input  taxed (subject to exceptions) Is an acquisition of a private or domestic nature
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Foundations of Taxation Law [¶7.8](c) © CCH Australia Limited Amount of input tax credit Amount of input tax credit Generally:    Where acquisition is only partly creditable:                                           Full input tax credit Extent of creditable purpose Extent of consideration Input tax credit Input tax credit GST payable on the supply = = X X
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Foundations of Taxation Law [¶7.9](a) © CCH Australia Limited Taxable importations Taxable importations Entities, whether or not registered, must pay GST on  “taxable importations” Taxable importations arise when: Goods are imported, and Entered for home consumption Importation is “non-taxable importation” if: Assuming the importation had been a “supply”, it  would have been “GST-free” or “input taxed” The importation falls within the provisions in Part  3-2 of GSTA, or Certain customs concessions apply
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Foundations of Taxation Law [¶7.9](b) © CCH Australia Limited GST on taxable importations GST on taxable importations GST on taxable importations 10% Value of taxable importation Value of taxable importation Customs value of imported goods International transport & insurance costs Customs duty payable on importation = X = + +
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Foundations of Taxation Law [¶7.9](c) © CCH Australia Limited Creditable importations Creditable importations An entity makes a “creditable importation” if: The entity imports goods solely or partly for a  “creditable purpose” The importation is a “taxable importation”, and The entity is registered or required to be registered A thing is not imported for a “creditable purpose” to  the extent it relates to making input taxed supplies or  is of a private or domestic nature
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Foundations of Taxation Law [¶7.9](d) © CCH Australia Limited Amount of input tax credit Amount of input tax credit Generally:   
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