TABL5551 - PowerPoint slides - Week 11 - GST.pdf

What are not financial supplies s40 5 including

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What are not financial supplies: s40-5; reg 40- 16 , including: * Cheque and deposit forms and books * Professional services eg legal, taxation, actuarial & rating services * Payment facilities for transaction cards for account providers (eg fees charged to bank by ATM owner) * Stored value facility cards & pre-payments TABL5551 - RHW adapted - Week 11 - GST 35
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What are not financial supplies continued * Supply of goods under various lease agreements including finance leases *Options, rights or obligations to make or receive a taxable supply *Facilities for trading securities or derivatives * Insurance and reinsurance except for life insurance * Certain payment delivery systems eg SWIFT * Broking services TABL5551 - RHW adapted - Week 11 - GST 36
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GST Treatment Of Financial Supplies Financial Supplies are input taxed: Supplier cannot charge GST on them and cannot obtain an input tax credit for them 75% input tax credit available for certain services Reg 70-2 eg transaction processing, credit reference services, arranging and managing loans, debt collection and cheque clearing Exported financial services are GST free i.e. no GST on the supply but the supplier can obtain input tax credits TABL5551 - RHW adapted - Week 11 - GST 37
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Apportionment may be necessary between input taxed, taxable, and GST free supplies Rulings favour ‘direct attribution’ where possible – otherwise apportionment via formula TABL5551 - RHW adapted - Week 11 - GST 38
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GST on low value imported goods [ATL 1625] New provisions to apply from 1 July 2018 ( sub-div 85-B ) GST will be imposed on supplies of goods valued at $1,000 or less at the time of supply to Australia if: * the goods are purchased by “consumers“ * from a non-resident supplier, and *are brought to Australia with the assistance of the vendor. Supplies to businesses will not be subject to the rules; TABL5551 - RHW adapted - Week 11 - GST 39
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GST on low value imported goods (contd) the liability for GST is with the vendor, the operator of an electronic distribution platform, or a goods forwarder; GST can be imposed on the end consumer by a reverse charge if they claim to be a business but in fact use the goods wholly or partly for private purposes; non-resident suppliers will be offered the option of “limited registration” status; and such importations will be deemed non-taxable importations to prevent double taxation (i.e. for the purposes of customs entry) Defence applies where supplier reasonably believes (after taking reasonable steps to inquire) it would be a taxable importation TABL5551 - RHW adapted - Week 11 - GST 40
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Supply of intangible property (other than goods or real property) made to Australian consumers by non-residents outside Australia [ATL 1623] 2016 legislation (“Netflix tax”) [ sub-div 84-B ] catches: 1. supply of digital and other intangible property (e.g.
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