7 (Goods and Services Tax)[1]

Registration of entities cont the following entities

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Registration of entities (cont) The following entities must also register: Taxi drivers Representatives of incapacitated entities Resident agents acting for non-residents that are  registered or required to be registered for GST
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Foundations of Taxation Law [¶7.4] © CCH Australia Limited Charging GST and claiming input  Charging GST and claiming input  tax credits tax credits GST is charged by registered entities on: Taxable supplies Taxable importations GST is not charged by registered entities on: Input taxed supplies GST-free supplies Non-taxable importations Registered entities are entitled to input tax credits for  GST charged on: Creditable acquisitions Creditable importations
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Foundations of Taxation Law [¶7.5] © CCH Australia Limited Net amount Net amount Net amount GST Input tax credits Increasing adjustments Decreasing adjustments 10% x value of taxable supplies Creditable acquisitions and creditable importations Applicable where adjustment events occur, bad debts written off, or changes in creditable purpose arise = +
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Foundations of Taxation Law [¶7.6](a) © CCH Australia Limited Taxable supplies (s 9-5) Taxable supplies (s 9-5) An entity makes a taxable supply if: The entity makes the “supply” for “consideration” The supply is made in the course or furtherance of  an “enterprise” that the entity carries on The supply is “connected with Australia”, and The entity is registered or required to be registered A supply is not a taxable supply to the extent that it is: “GST-free”  “Input taxed”
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Foundations of Taxation Law [¶7.6](b) © CCH Australia Limited GST on taxable supplies GST on taxable supplies GST on taxable supply 10% Value of taxable supply Value of taxable supply Price* 10/11 GST Price* 1/11 * Price = GST-inclusive monetary consideration for the supply, or, where consideration is not provided in money, the GST-inclusive market value of that consideration = = = x x x Therefore:
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Foundations of Taxation Law [¶7.7](a) © CCH Australia Limited GST-free supplies GST-free supplies GST is not payable on GST-free supplies GST-free supplies include (Div 38): Supplies of certain food and related packaging Supplies of certain medical and hospital services Supplies of childcare Exports Supplies of education courses Supplies of water, sewerage, drainage Supplies of going concerns Transport on international flights and voyages
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Foundations of Taxation Law [¶7.7](b) © CCH Australia Limited Input tax supplies Input tax supplies GST is not payable on input tax supplies Input taxed supplies include (Div 40): Financial supplies Leases of residential premises Sales of certain residential premises Supplies of precious metals
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Foundations of Taxation Law [¶7.8](a)
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