Australia: Draft GST ruling on intangibles.
13th September 2019: Update on Goods and Services Tax (GST) in Australia.
The Australian Taxation Office (ATO) has published draft Goods and Services Tax Ruling (GSTR) 2019/D2 on the supply of anything other than goods or real property connected with the indirect tax zone (Australia)
When issued, it is proposed to apply both before and after its date of issue and will replace GSTR 2000/31 Goods and services tax: supplies connected with Australia.
This draft discusses when a supply of anything other than goods or real property (an intangible) is connected with the indirect tax zone under paragraphs 9-25(5)(a), (b) and (c) and Division 85 of A New Tax System (Goods and Services Tax) Act 1999.
For a supplier to be liable for goods and services tax (GST) on a taxable supply, one of the requirements is that the supply must be connected with the indirect tax zone.
This Ruling also explains exclusions to the ‘connected with Australia’ rules, where some supplies of intangibles made by non-residents are treated as being not connected with Australia. These supplies are referred to in this Ruling as ‘disconnected’ supplies.
See more Taxback International Articles
What is Value Added Tax (VAT)?
29th October 2019: Are you looking for the basics behind VAT? Here's everything you need to know.
Millenials Vs Baby Boomers: Business Travel Edition.
Understanding your employees is key to travel policy success!
Pharmaceutical companies losing millions in unclaimed VAT refunds each year.
Are you aware that VAT on tooling, clinical trials and trade show costs are reclaimable?